Narrow in on a home location

Do your research and determine whether you can save money based on your new home’s location. Make sure to take property tax and utility costs into account, and determine whether a location will add to (or hopefully save!) any costs associated with your current commute. The cost of groceries and everyday items can also fluctuate in different locations.

Keep in mind some of these details before you begin shopping around.

House hunting (the fun part!)

Between going to open houses and scheduling showings, finding the right home can take some time. Make the process a little easier on yourself with our open house checklist. Print one and take it with you to each home you visit.

Negotiating an offer

Buying real estate is more formal than bargaining for a car — it involves written proposals exchanged between your real estate agent and the seller’s agent. When you decide to make an offer, “how much” is a decision you may want to make with your agent.

A good real estate agent will do a Comparative Market Analysis (CMA) so you know the true market value of the home you hope to buy. This will help you negotiate for the price you want. Be sure to understand how much house you can afford before committing to a specific price. 

Helpful hints

Want to make an offer? First, sit down with your real estate agent to discuss these tips and tactics. 
 

• Show that you're serious

​From the sellers' point of view, a pre-approved buyer is likely more attractive than someone who says they can buy a house but have nothing but their word to back up their offer. A pre-approval could help you negotiate on price and it could be a deciding factor for sellers who receive multiple bids.
 

• Put some skin in the game

When purchasing a home, earnest money is an initial deposit paid to the seller if your offer is in consideration. This payment helps put weight behind your intention to buy. If your purchase offer is among multiple bids on a home, the earnest money you put down (also known as a "good faith deposit") may influence the seller’s decision in your favor.

• Leave room to negotiate

Don't call your first offer your "best" or "final" offer if you're willing to go higher. In a competitive market, you can put an escalation clause in your offer, agreeing to go a small amount above the highest bid — but before you do, decide on the maximum amount you're willing to pay.
 

• Lowball with caution

Bidding low may be a good strategy in a weak market, but if your bid is too low, the seller may be offended and reject your offer without even trying to meet you in the middle. If you want to make an offer that's significantly below the asking price, explain why in specific but polite terms.
 

• Time on market matters

If a house has only been on the market for a few days, the seller is less likely to give you a price break than if the house has been sitting empty for months. Why the seller is selling can also provide a clue as to a seller's potential willingness to wheel and deal.
 

• Make it easy for the seller to sell

For example, if you can agree to set up your housing inspection quickly — and to take responsibility for smaller repairs that come to light — your offer will be more attractive than a competing offer that involves more pre-closing repair work to be completed by the seller.
 

• Remember: Sellers are people, too

Sellers are often attached to their homes and want to leave them in good hands. An offer letter that explains why you want the house — e.g., to live closer to an elderly relative — can sometimes make a difference.

Getting ready to close

Second to having your offer accepted, the inspection is probably the most stressful part of the home-buying process. Whether it's a brand new or century-old home, there's no way to know the scope of possible problems until you peek behind the paint.

The information you discover during an inspection may help you negotiate a lower price with the seller. It can prepare you to tackle issues once moved in or aid in your decision to walk away from the deal.

Make sure you’re getting the most out of the inspection by asking these 10 questions. 

What is an escrow account?

Do I need one?

An escrow account is how your mortgage lender assures that your property taxes and insurance are paid on time. This account is maintained by your lender to collect funds from you in order to pay the insurance and property taxes on your home. Note: Some escrow accounts are not always optional, some mortgages may require them. 

Here are a few reasons you may want to consider an escrow account for your mortgage:

• It's an easy way to manage home taxes and insurance.

Your mortgage lender sets up an account that's specifically for paying property taxes and insurance. Every month, part of your payment goes into this account so that when it's time to make a payment for taxes or insurance premiums, there's money on hand and your lender pays the bills on your behalf.
 

• It could mean peace of mind for you.

Many buyers enjoy having an escrow account because it makes paying these expenses easy. You don't have to worry about sending in a check or forwarding any bills. Your mortgage lender handles everything without you ever have to think about it. 
 

• The account adjusts to keep up with current needs.

Every year, your lender will review your escrow account to see if you need to pay more or less to cover the costs for the following year. Your mortgage payment gets adjusted based on this information.

Planning calculators

Run your numbers and make a plan.

Deciding whether or not renting or buying is right for you? Run your numbers through our rent vs. buy calculator. 

Interested in checking your numbers to see how much you might be able to afford? Try our affordability calculator. 

Calculate a VA or FHA loan, determine a down payment number, see your fixed-rate numbers and more. Find the right calculator for your needs. 

Check these off your list

Put pen to paper and keep track of these key steps when buying a home. Fill these in, print them off and keep them handy during your journey.

Ready to see if you're pre-approved for a loan? It's a good start to see how much home you may be able to afford. Here's what you'll need to get pre-approved.

This monthly planner will help you analyze your current and future housing-related expenses. 

Print and bring this checklist when you visit an open house or tour a listing. It may help you narrow down your options.

Make sure you're getting the most out of the inspection by asking these questions.