Should I buy or rent?
See Rent Vs. Buy: Pros & Cons
GETTING STARTED
What is the first step of the home buying process?
A lender reviews your income, credit, debt, and assets to determine:
- How much you can borrow
- What your estimated monthly payment will be
- What price range you should shop in
Once you’re pre-approved, you can start home shopping with a clear budget and stronger offer position.
How much home can I afford?
Lenders typically recommend spending no more than 28–33% of your gross monthly income on housing, but your existing debt, credit score, and down payment also affect affordability. Monthly obligations such as car loans, student loans, and credit card payments will impact how much loan you can qualify for.
What are the upfront costs?
When buying a home, most buyers focus on the purchase price and interest rate, but there are additional upfront costs:
- Down payment: Usually the largest expense. Conventional loans typically require at least 5%, FHA loans about 3.5%, and some programs (VA/USDA) may offer no down payment options.
- Closing costs and prepaids: Expect approximately 2%–5% of the purchase price to cover closing costs and prepaid expenses.
What credit score do I need to buy a home?
Most loans require a credit score of at least 620+, though FHA loans may allow lower scores. Higher credit scores typically qualify for better interest rates and loan terms. Your lender can also guide you on ways to improve your credit and reduce existing debt before purchasing a home.
How much do I need for a down payment?
It ranges from 3%–20%+ depending on the loan type, with first-time buyers often putting down 3–5%. A down payment of 20% or more can help you avoid private mortgage insurance (PMI). For investment properties (typically 25%+) and land purchases (often 35%+), down payment requirements are generally higher.
What programs are available for first-time home buyers?
Options include FHA loans, VA loans, Washington State down payment assistance programs, and various state and local grants.
Do I need a real estate agent?
While not required, a buyer’s agent provides market knowledge, negotiation support, contract guidance, and helps protect you throughout the process. It is strongly recommended that buyers work with a real estate agent. Keep in mind that not all agents are the same. Trying to navigate the process without professional representation can make buying a home significantly more difficult.
How do I choose a real estate agent?
Choosing the right agent is one of the most important decisions in a successful real estate transaction.
- Local expertise: Knows your area and current market trends.
- Proven experience: Strong track record in your price range.
- Good communication: Responsive, clear, and keeps you informed.
- Strong negotiation skills: Advocates effectively for your best outcome.
- Good reputation: Positive reviews and client referrals.
- Trust and comfort: You feel confident and comfortable working with them.
- Don’t choose based on commission alone: The cheapest agent isn’t always the best—experience and results matter more.
What is Buyer Brokerage Services Agreement?
In Washington State, a Buyer Agency Agreement is a written contract between a home buyer and a real estate brokerage (and their agent) that formally establishes the agent as the buyer’s representative.
- The agent legally represents you (the buyer) in a home purchase
- They owe you duties like loyalty, confidentiality, and full disclosure
- It defines how long the relationship lasts and what areas it covers (for example, 1–6 months or more)
- Compensation terms and amount paid by buyer
What if I’m already working with an agent?
If you are already working with another real estate agent, we are unable to assist with tours or offers. If you feel your current agent is not meeting your expectations, you may end that relationship. If you have signed a buyer’s agency agreement, please review it carefully and notify your agent in writing before making any changes, as there may be specific terms or obligations.
FINANCING & MORTGAGE
Should I get pre-approved or pre-qualified first? What is the difference between pre-approval and pre-qualification?
- Pre-qualification is an initial estimate,
- Pre-approval is verified by a lender and much more reliable. Pre-approval is stronger and recommended because it shows sellers you are a serious, qualified buyer.
What types of mortgage loans are available?
Common options include:
- Conventional loans – Standard financing, typically with a minimum 5% down payment
- FHA loans – Lower down payment and more flexible credit requirements, minimum 3.5% down payment
- VA loans – For eligible veterans, often with no down payment required
- USDA loans – For eligible rural areas, with no down payment required
- Jumbo loans – For high-priced homes that exceed standard loan limits
What interest rate can I expect?
Rates vary based on credit score, down payment, debt-to-income ratio, and current market conditions. Your lender will provide a personalized rate based on your financial profile.
I got pre-approved—can my interest rate change?
Yes. Interest rates can fluctuate based on market conditions. Your lender typically locks your rate once you are under contract (after your offer is accepted), though it may also be locked earlier depending on the lender and loan program.
How do closing costs work and how much are they?
Closing costs typically range from 2%–5% of the purchase price and include lender, title, and escrow fees. You will also have prepaid expenses, such as property taxes, homeowner’s insurance, and HOA dues, depending on the property.
Can I buy a home with no money down?
Yes, through VA loans, USDA loans and WA-State Down Payment Assistance, if you qualify.
What should I avoid doing during the loan process?
Avoid opening new credit accounts, making large purchases, losing or changing jobs, or co-signing loans until after closing, as these actions can affect your credit, debt-to-income ratio, and loan approval.
HOME SEARCH
How do I choose the right neighborhood?
Consider schools, commute, safety, amenities, future growth potential, and overall lifestyle fit. Choosing the right neighborhood will also influence your home’s future value and appreciation over time.
How long does it take to buy a home?
On average, the closing process takes 30–60 days once your offer is accepted, depending on financing, inspections, and lender timelines. However, the home search itself can take several weeks to a few months, depending on market conditions, available inventory, and how quickly you find the right home. Factors such as competition, preparation, and responsiveness can also impact your overall buying timeline.
What should I look for during home tours?
Focus on the home’s condition, layout, natural light, traffic noise, potential structural issues, and long-term livability to ensure it fits both your current needs and future plans. Home buying is a long-term decision, so it’s important to consider how your lifestyle may change over the next 5–10 years.
How many homes should I view before making an offer?
There’s no set number—many buyers purchase after viewing 5–15 homes, but it varies depending on market conditions, budget, and personal preferences.
Is it better to buy a new construction or resale home?
New construction offers modern features, energy efficiency, and builder warranties, while resale homes may offer more established neighborhoods, larger lots, and stronger value or pricing opportunities.
MAKING AN OFFER
How do I know if a home is priced fairly?
Your agent evaluates recent comparable sales (comps), current market trends, and the home’s condition to help determine whether the price is fair.
How much should I offer on a home?
It depends on competition, condition, and overall market demand—offers may come in below, at, or above asking price. Your agent should conduct in-depth market research and provide strategic guidance to help you make a competitive and informed decision.
What contingencies should be included in the offer?
Common contingencies include inspection, financing, appraisal, HOA review, and title contingencies. In multiple-offer situations, some buyers may choose to submit above-asking-price offers and reduce or waive certain contingencies to make their offer more competitive and appealing to the seller.
Can my offer be rejected even if it’s full price?
Yes—sellers may choose a higher-priced offer, a cash offer, fewer contingencies, or overall better terms, depending on what best meets their needs.
How competitive is the current market?
It varies by area and season, and your agent will explain current local competition levels. Market conditions change frequently. In the greater Seattle area, approximately 40% of homes sell at or above asking price, depending on inventory levels and buyer demand.
Can I back out after my offer is accepted?
Yes, but it depends on the terms of your contract.
After your offer is accepted, you can usually still back out during the contingency period (such as inspection, financing, or appraisal contingencies) without penalty, as long as you follow the contract timelines.
Once contingencies are removed, backing out becomes more difficult and you may risk losing your earnest money deposit or facing legal consequences, depending on the agreement.
If you’re unsure, it’s always best to review your specific contract with your real estate agent before making any decision.