Home Loan Center

Buying a Home

Steps to Buying a Home

• Getting Started - Tips to help you enter the real estate market with confidence
• Calculating What You Need - How much cash do you need to buy a home & how to invest for the down payment
• Finding a Home - Helpful ideas to help you find the home of your dreams
• Making an Offer - Process of making an offer & negotiating a deal
• Finding a Loan - Learn about the loan option available & which ones fit your specific needs
• Final Steps - Learn about insurance, the closing process, & what to do after your loan closing.

Finding a Home

• The Right Home For You
• Building a Home
• Determining the Value of a Home

First of all, think about the following:

• Which neighborhoods appeal to you?
• Do you need to be near schools, shopping or public transportation?
• How close do you need to be to your job?

Once you’ve determined the general locale that meets your needs, you’ll be ready to make a list of the home features that are important to you. Do you need two bedrooms or three? How many bathrooms? Would you like an older home with character in an established neighborhood, or are you drawn to the benefits of a newly constructed home?

Make a list of the amenities and features you’d like and let your imagination run wild. Gourmet kitchen? A fireplace? Maybe a large fenced yard? What about the exterior — wood frame, brick or stucco? It’s important that you prioritize this wish list. Most homebuyers will need to make compromises, and it’s helpful if you already know which items are “musts” and which ones are simply “nice-to-haves.”

Armed with your list, you can now begin. How should you begin? Try these approaches:

• Work with a real estate agent who is familiar with the area where you wish to live.
• Use the Internet to locate homes that are for sale.
• Look through the real estate classifieds of the newspaper and the local real estate magazines.
• Talk to your friends and co-workers. Perhaps they will know of someone who is selling.
• Visit open houses. This is a good opportunity to speak with real estate agents about other properties that are for sale.
• Buying your first home — or your second, or third — is an exciting endeavor. You’ve been working hard toward this goal, so take your time, get the help of professionals and, above all, enjoy the process.

Why build a home?
Many homebuyers find that building a new home offers advantages over purchasing an older, resale home. Since all the materials and appliances in the home will be brand-new, these homes generally require less maintenance. New home construction must conform to today’s building codes, often producing homes with more safety features and fewer health hazards.

• Ensure a smooth construction project

Building a new home does require some careful planning. In order to make sure your project goes smoothly, you may want to:

• Decide which features you want in advance. Consider whether you want to customize the floor plan or even order particular home appliances through the builder.
• Check the builder’s reputation. Your local Better Business Bureau, builders association, and newspaper all provide listings for builders. You can check out prospective builders by visiting their construction sites, getting references from previous clients, talking to real estate agents, or even hiring a general contractor for an assessment.
• Consider signing a written contract. Many homebuyers sign contracts with builders that detail the house model, building options, materials, payment schedules, timing for completion of construction and how to resolve disputes. Consult with your real estate professional and lawyer to help you through the contract and negotiation process.

Recommended products

• Once you decide to build a home, our Northwoods Bank Home Loan Center Lenders can suggest a personalized financing program to match your needs.

Here are some factors that may affect home prices:

• Sellers’ motivation. For example, if the sellers are moving because they’ve already purchased another home, they’re more apt to accept a lower price than someone who is simply “testing the waters.
• The real estate market. If it’s a hot market where there are many buyers but few properties, home prices rise due to the higher demand. In a slower market where there are many more available properties and few buyers, prices often decrease.
• Condition of the property relative to the others in the neighborhood. A professionally remodeled home will often sell for more than a similar one that has not been updated.

Unlike many major purchases which have a specific price tag, homes sell for whatever amount the buyer and seller negotiate. Even houses that are similar, and in the same neighborhood, can sell for different prices. Keep in mind the general definition of “home value”: what a buyer is willing to pay, and what a seller is willing to accept.

These are some of the many factors you may wish to consider when trying to value a home. The following resources can help you to determine a general estimate of value:

• If you’re using a real estate agent, ask them to prepare a Competitive Market Analysis (CMA) for you. This report will compare the home you’re interested in with other comparable homes that have recently sold.
• Knowing the general value of a particular home provides you with the information you need to determine your offering price. You should keep the local real estate market in mind as you make your offer to buy. If your offer is too low, you may risk losing the house to another buyer. Ask yourself how disappointed you would be if the seller accepted a higher offer from someone else.
• Keep your eyes on your goal, which is to successfully purchase your very own home.

Making an Offer