BUYER'S GUIDE
Buying a home is one of the most important decisions you’ll make, and having the right guidance makes all the difference. True North Group’s Buyer’s Guide walks you through every step of the process with clarity and confidence. Follow our top 10 steps below to successfully find your dream home, and scroll down to request your copy of our complete Buyer’s Guide.
1. START WITH YOUR CREDIT
Before beginning your home search, it’s important to understand your credit. Credit reports are maintained by the three major bureaus—Experian, Equifax, and TransUnion—and provide a history of your payment habits and any past credit challenges.
Your credit score is calculated based on the information in these reports, meaning you may have three different scores. This number plays a key role in determining your ability to qualify for a loan and the interest rate you’ll receive.
To prepare, request a copy of your credit reports and review your scores through a trusted source such as MyFICO.com. Errors are more common than you might think, so be sure to dispute any inaccuracies directly with the credit bureaus, as corrections can take a few months. If your report reflects past issues, be ready to discuss them with your lender so they can better understand your situation.
2. SET YOUR BUDGET
The next step is determining how much home you can comfortably afford. While online calculators are a great starting point, the most accurate way is to get pre-approved by a lender. They will review your income, debt, and credit to help you understand your true buying power and loan options.
A general guideline is to look for homes priced around two to two-and-a-half times your annual income. However, if you carry significant debt—such as credit cards, alimony, or other financial commitments—you may want to adjust your budget accordingly.
Another important rule to keep in mind is that your total monthly housing expenses should ideally not exceed 36% of your gross monthly income. Your down payment will also play a key role in how much home you can afford, so it’s important to factor that into your planning as well.
3. LINE UP YOUR FUNDS
Once you’ve established your budget, the next step is preparing your funds for both the down payment and closing costs. While many lenders prefer a down payment of around 20% of the purchase price, there are a variety of loan programs available that allow for much lower down payments—sometimes as little as 3%—through programs backed by organizations like Fannie Mae, Freddie Mac, FHA, and VA.
Keep in mind, if your down payment is less than 20%, you will likely be required to pay private mortgage insurance (PMI), which increases your monthly payment but allows you to move forward with less cash upfront.
In addition to your down payment, you’ll also need to budget for closing costs. These can include appraisal fees, lender fees, inspections, title services, and more—often totaling around 2%–5% of the loan amount.
4. FIND THE RIGHT AGENT
While most homes are listed by agents representing the seller, it’s important to remember that those agents are working in the seller’s best interest. To ensure you have someone advocating for you, it’s essential to work with a dedicated buyer’s agent.
A buyer’s agent represents your interests throughout the entire process—from identifying the right homes to negotiating terms and guiding you through closing. They have access to the same listings as any agent but are focused solely on helping you make the best decision for your needs and goals.
In many cases, buyer’s agents are compensated through the seller’s commission, though compensation structures can vary. No matter how they are paid, having a knowledgeable professional on your side provides valuable guidance, market insight, and peace of mind as you navigate your home purchase.
5. SEARCH FOR A HOME
Start by identifying the city or neighborhood that best fits your lifestyle. Look for areas with strong economic stability, a mix of residents, and desirable amenities. Even if you don’t have school-aged children, homes in top-rated school districts often hold their value better over time.
Pay attention to local market trends—if homes are selling quickly or above asking price, it’s a sign of strong demand. If your timeline allows, consider house hunting during the off-season, when competition may be lower and sellers more open to negotiation.
Keep your search criteria flexible by slightly expanding your price range and location. This can open the door to more opportunities and help you find the right home more efficiently.
6. Make an Offer
Once you’ve found the right home, be prepared to act quickly. Work with your agent to determine a strong and strategic offer based on recent comparable sales in the area.
Understanding local market conditions is key—buyers often have more negotiating power in a slower market, while competitive markets may require stronger offers.
If the home is a great fit, avoid submitting an offer that is too low, as it could risk losing the opportunity. Instead, focus on creating a well-rounded offer that meets both your needs and the seller’s goals. This could include flexibility on timing, terms, or included items.
Once both parties agree on price and terms, the seller’s agent will prepare the purchase agreement, typically outlining a closing timeline of 30 to 60 days.
7. ENTER INTO A CONTRACT
Once your offer is accepted, you’ll enter into a formal purchase contract. It’s important to have your agent or attorney review the agreement to ensure key protections are included. These typically include financing approval, a satisfactory home inspection, and the ability to complete a final walk-through before closing.
You’ll also submit an earnest money deposit—usually 1% to 10% of the purchase price—which is held in an escrow account until closing. This deposit shows your commitment to the purchase and is applied toward your transaction at closing. If the deal falls through due to a contingency, your deposit is typically refunded.
8. SECURE YOUR LOAN
Once you’re under contract, it’s time to finalize your financing. Work closely with your lender to lock in your loan terms, including choosing between a fixed-rate or adjustable-rate mortgage and deciding whether to pay points.
During this stage, your lender will complete a credit check and order an appraisal to confirm the home’s value. While some upfront costs may apply, most loan-related fees are typically paid at closing.
You’ll also need to secure a homeowner’s insurance policy, as most lenders require proof of coverage before approving your loan. Staying responsive and organized during this step will help keep your transaction on track for a smooth closing.
9. GET A HOME INSPECTION
In addition to the lender’s appraisal, it’s important to hire your own home inspector to evaluate the property. An inspection typically takes a few hours and provides valuable insight into the home’s condition, including structure, systems, and overall maintenance.
Attending the inspection is highly recommended, as it gives you a better understanding of the home. If significant issues are discovered—such as roof or structural concerns—you can work with your agent or attorney to negotiate repairs, request a credit, or adjust the purchase terms.
If an agreement cannot be reached and your contract includes an inspection contingency, you may have the option to walk away without penalty. This step helps protect your investment and ensures you’re making an informed decision.
10. CLOSE THE DEAL
As you approach closing, your lender will provide a final settlement statement outlining all costs associated with your purchase. Review this document carefully, as it includes items such as title insurance, which protects your ownership rights, along with other closing-related fees.
Your lender may also require an escrow account to cover future property taxes and insurance, typically collecting a few months of payments upfront.
Before closing, you’ll complete a final walk-through to ensure the home is in the agreed-upon condition. On closing day, you’ll sign the necessary documents, finalize your loan, and officially take ownership of your new home. While the process is straightforward, your agent will guide you through each step to ensure everything goes smoothly.
GET YOUR COMPREHENSIVE BUYER'S GUIDE
The path to a new home is often filled with uncertainty, but it doesn’t have to be. We’re more than just agents; we’re expert listeners and navigators. By asking the right questions, we help you define exactly what you’re looking for—reducing search time and providing the clarity you need to make the right decision for your future.
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Our mission is to actively serve our community, not passively but proactively. We aim to overcome uncertainty with clarity, choosing not to disengage but to actively engage and build upon ideas within our community. Through buying and selling homes, we aspire to help people fulfill their dreams.