Buyer's Guide

A Step-by-Step First Time Buyer's Guide

Buying a home is one of the most exciting milestones of your life. To prepare yourself for this moment, you need to know what to expect during the process. This step-by-step first time buyer’s guide created by our team will help reduce the stress of buying a home and help you enjoy the journey as much as possible.

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Step 1: Research

Do you know where you want to buy, town specific, and proximity of amenities? If you want a property on a large piece of land or close to restaurants and shops, in the village or a few miles outside town? Which features do you like and dislike? How much square footage do you need? If you’re not sure of the answers, now is the time to start researching. In addition to looking for homes that interest you, also take note of any changes in asking prices. This could give you valuable insight into housing trends in specific neighborhoods and help you when the time comes to make an offer.

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Step 2: Decide on Your Budget

Notice we said to decide on your budget—not determine how much the mortgage company will give you. In many cases, a mortgage company will pre-approve you for more than you’re comfortable spending, which is why you need to determine the monthly payment you feel comfortable with before talking to a lender. This likely includes doing a full household budget and taking into consideration what changes other than a mortgage payment will occur once you move into your new home. If you’ve lived in an apartment or with roommates, you may overlook new expenses like garbage, water, or HOA fees that could easily blow your budget.

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Step 3: Decide on Your Budget

Notice we said to decide on your budget—not determine how much the mortgage company will give you. In many cases, a mortgage company will pre-approve you for more than you’re comfortable spending, which is why you need to determine the monthly payment you feel comfortable with. This likely includes doing a household budget and taking into consideration what changes other than a mortgage payment will occur once you move into your new home. If you’ve lived in an apartment or with roommates, you may overlook new expenses like garbage, water, or taxes that could easily blow your budget.

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Step 4: Get Prequalified

Just because you think you can afford a certain price point,  doesn’t mean the mortgage company will agree. Just as they may approve you for more than your comfort level, they may also approve you for a lesser amount than you expected.  Lenders consider several things to qualify a borrower, your debt-to-income ratio, your monthly income, your credit score among other items all factor in to securing a mortgage. Before you get your heart set on a home, it’s best to know what range you should be looking in, and what type of mortgage best suits your needs, and talking to a mortgage professional will help you find out what amount you can qualify for. This will also be an advantage when you make an offer on a home, as sellers don’t typically entertain offers from those who aren’t already prequalified for a loan.

Our goal is to provide you with the most personalized service that is designed to help you buy your dream home

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Step 5: Find the Right Home

This should be the most enjoyable step of the entire process (other than moving in!). We will arrange showings of homes you’re interested in that are within your price range and other important criteria. We’ll pay attention to what you like and don’t like. Don’t limit your search to the home itself. Make sure to take time to explore the neighborhood and keep an eye on how close it is to necessities like schools, grocery stores, and restaurants.

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Step 6: Make an Offer

Once you have selected the property you want to call home, we will collaborate to craft an offer, which will reflect the prevailing market dynamics and the comparative valuation of similar properties.  Leveraging the analysis of pertinent market data, our adept negotiation expertise will be instrumental in navigating any potential counteroffers to bring about an agreement. Rest assured, our dedicated team remains committed to orchestrating a seamless transaction, ensuring your interests are safeguarded throughout the negotiation process.

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Step 7: Have the Home Inspected

In most cases, your offer will be contingent on having the home inspected to ensure there is no major structural damage or large repairs needed. We can help you arrange this, recommend local home inspectors and you can schedule it within days of making an offer. If there are no major issues, the process goes to contract. If there is, you can renegotiate your offer based on what needs to be fixed, or in the worst-case scenario, withdraw it.

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Step 8: Hire an Attorney

Now is the time to hire an attorney. The seller’s attorney will draft contracts to send to your attorney. Your agent will reach out to your chosen lawyer to send the necessary paperwork to them. Questions to ask when choosing an attorney include, what they charge, discuss the timeline to make sure they will in the office when you need them (not on vacation), wiring instructions for your down payment. Once your attorney is satisfied with contracts, you’ll be asked to sign them and send the down payment to the seller’s attorney’s escrow account. Once the seller signs, you are in contract! The attorney orders title insurance.

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Step 9: Start Your Loan & Schedule Your Home Appraisal

Now is the time to go back to the mortgage lender who pre-approved/pre-qualified you and start (or finish) your application. This is a good time to share your timeline with your loan officer, talk with them about when best to “lock” your rate, ordering the appraisal and any paperwork/documentation you need to submit. 

Your lender will have your new home appraised.  The appraisal is to determine if the property’s value is enough to secure the loan.

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Step 10: Commitment Letter

Upon the return of the appraisal to the bank, provided the value substantiates the purchase price, your lender will issue a commitment letter.  This assures the seller that the bank is lending you the money.  The commitment letter typically lists a few last requirements to closing the loan.

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Step 11: Title / Municipal Reports

Ordered by your attorney when you signed the contracts, title and municipals reports.  These ensure key legal details of the property’s history and ownership.  The municipal report details any open permits or issues a municipality may have with the property that need to be addressed prior to closing.

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Step 12: Clear to Close

The bank has everything it needs to fund the loan and a closing is scheduled!

Congratulations!

After signing the final paperwork to complete the purchase, you are now the owner of a new house. It may take a few days for your loan to be funded once the paperwork has been returned to the lender, but once that check is delivered to the seller, you’ll be all set to move into the home of your dreams. 

Testimonials

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  • Donna went above and beyond to make sure we had the best possible service and continues to be someone that we’re excited to work with!
    — Simon C., buyer
  • I cannot imagine a real estate professional better than Harris. He has comprehensive knowledge of the market. He is completely responsive to the preferences and needs of his clients. He is thoughtful, careful, and wise. And he cares about his clients as people. He is the best, period.
    — Trevor M.
  • Jack is the best. He was sensitive to our needs. He responded quickly to questions and was a very accessible, helpful, and knowledgeable professional.
    — Buyer
  • I would highly recommend Jesse, I've even already given his info to several friends thinking about buying upstate. I had a lot of questions and needed a lot of guidance buying my first house and he answered everything and walked me through step by step without it seeming complicated at all. I could trust everything was moving as it should and on the way he had plenty of local recommendations for other services I needed. It was a great experience and I genuinely don't have complaints.
    — Kelsey S.
  • Working with Hayes to buy a house in Kingston has been a completely positive experience, from start to finish. He was genuinely, deeply, and personally committed to us finding the right property, and patiently guided us through lots of house visits until we found the right one. Not only is Hayes highly knowledgeable about real estate and the area, but he is also fun, kind, and highly professional. We recommend him for his expertise and insight, and because he is just great in every way.
    — Buyer
  • After living in Rhinebeck for over 30 years, I ended up selling my home which I loved. But as I have been living abroad, it made sense and covid helped me decide. Bryn was amazing as she kept in touch with me and helped guide me through all the intricacies of paperwork and payments which when living outside the USA is twice as stressful as a normal home sale. She was supportive, helpful, and understanding. I recommend her with enthusiasm and totally appreciate all that she did for me in the process of selling my home.
    — Linda R.
  • Julie is knowledgable and really understands the emotions one goes through when selling one's home! That is priceless.
    — Marthe R.
  • It’s not just the properties she helps me find and buy, it’s her integrity and insight to avoid unnecessary risks that really set her apart. I never feel like I’m making a transaction with Donna. I always feel like she’s building a sustainable long-term relationship with me.
    — Tom P.
  • We were tough buyers with a lot of priorities, not only did Leigh not give up on us, she nailed it! We are so happy with our new home and we're so glad to have worked with such a respectful, knowledgeable realtor like Leigh, highly recommend it!
    — Buyer
  • I'll make this very simple for any reader....Harris is the best real agent person you will ever meet. He is just in another world from any one else. Harris will spend the right amount of time to get to know you so as to steer you toward the right house, in the right location for you, for the now, and for the long term. We have been in our new house six months now. It has been our great fortune and pleasure that he has become a close and trusted friend, a part of our family, who has helped quickly become part of our new community.
    — Buyer
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Unlock Upstate Team

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