Understanding the process for purchasing a home is the best way to limit issues and make confident decisions. The process can take a lot of time and effort, but it’s worth it in the end to avoid potential footfalls.

The first step in understanding the process is determining how much you can afford. The general rule of thumb is that a home should cost no more than 3 to 5 times your annual income providing you intend to make a 20 percent down payment and have little debt. Also combined with making sure you have good credit.

After you’ve determined the amount you can realistically spend on a home, research the homes that interest you in your favorite areas. Obviously, online is the way to go. Redfin and Zillow are two powerhouses that will help you get the job done. Once you have entered your criteria, make sure to sign up for alerts to get new listings sent to your inbox.

Keep a journal of the homes that you love so you can discuss your notes with your real estate agent. During this process, start vetting mortgage brokers and banks to get pre-approved for a mortgage.

Your real estate agent is an important partner to have when buying or selling a home. Your agent has privy to much information that isn’t online or otherwise accessible. Their knowledge of the market and the process will prove valuable in your home search. Go to your real estate agent armed with loves, likes and dislikes, must-haves and deal-breakers. This will empower your agent to find your perfect match. Most of us can’t afford what we really want, so think about what you might sacrifice within the home rather than the location of where you want to be. Making improvements in the home is way easier than changing the neighborhood!

When you find the one home you think you have to have, you’re ready to make an offer! After seeing many homes, you may tend to forget a home’s good and bad points, so it’s best to take pictures or make videos so you can review the home again when you’re ready to place an offer.

A home inspection is critical to the home buying process. After your offer has been accepted by the sellers, it is imperative to hire a certified home inspector to look for structural damage or other problems that might need fixing or be a deal breaker. If you do not have one in mind, ask your agent or ask for a referral from a friend.

Your agent can help you place a contingency on the home in lieu of the final inspection. This contingency can help you renegotiate the price on the home and withdraw your offer without paying a penalty in case the inspection uncovers significant or expensive damage.

If you have more questions about the home buying process set up a coffee date with me.