There are different ways to go about buying a home. As a homebuyer, your situation, goals, and expectations about the process can vary widely. To demystify the home-buying process, we’ve compiled a list of some of the most common questions with useful information to help you get started.

How can I start the home-buying process?

It’s important to start the home-buying process by answering some key questions.

1. Where do you want to live and why?
2. What amenities, aspects of the neighborhood, and the community are you looking for?
3. When it comes to the type of home you want to buy, what are your needs versus your wish-list items?
4. Are there life situations to consider when factoring in the type of home that will suit you/your family best? (For example, needing a single-level home, a fenced backyard, a home office, or proximity to the ferries for your commute.)
5. What is your budget?

A highly rated local real estate agent will help walk you through the home-buying journey. So finding a great agent and then discussing your answers to the questions above will help you create a path forward.

Another excellent resource is Windermere’s Guide to Buying a Home. It offers a comprehensive overview of the home-buying process, including pre-approval and other steps involved. Additionally, it explains purchase and sales agreements and inspection reports. You’ll also find helpful moving tips in that guide.

What should I look for in an investment property?

There are two types of residential real estate. One may be used for you to own as your primary residence. The other may be used as an investment opportunity. In this case, you, as the owner, do not occupy the home but purchase it for financial gain. If you are in the market for an investment property, there are different factors to consider. Just as you would consider when purchasing your primary residence, consider the area the investment property is in, local amenities, and future development of that area. Additionally, consider current rental listings and vacancies, major employers in the area, and average rents. Once you purchase an investment property, follow all laws to ensure it is properly maintained and gets rented quickly for the highest price. If you don’t want the stress that can come with being a landlord, Windermere Property Management is a wonderful local option here in Kitsap County.

What are the ownership options when I buy a home?

If you are looking to purchase a home, you may decide to do so independently. In this case, you will be the sole owner of the home. Another option is to co-buy a property. In this case, ownership of the property is split between two or more people. Be sure to consult with a real estate attorney to iron out details of the agreement, such as down payment, home repair, and mortgage payment responsibilities between the parties.

There are pros and cons to co-buying a property. On one hand, it can be a good way to enter real estate if you don’t currently have enough funds alone. On the other hand, there is the risk the co-buyer will be unable to uphold their end of the deal should their financial situation change. Carefully consider your situation and possible outcomes when deciding how to purchase a property.

What types of home loans are there?

There are many different home loans, and a mortgage consultant is going to be your best resource to ensure you find the right one. Loan terms can range anywhere from 10 years to 30 years. Fixed-rate mortgages have one interest rate for the entire length of the loan, whereas a variable-rate loan may change over time.

Conventional loans typically require 20% down, but other loan programs can assist individuals such as first-time homebuyers. An FHA (Federal Housing Administration) loan only requires 3.5% of the purchase price down, while a VA loan offers zero down as long as the sales price isn’t higher than the home’s appraised value. Check out this Q&A with Mortgage Consultant Cherie Kesti for an in-depth look at mortgage options.

How can I reduce my monthly payment?

With today’s interest rates, many buyers are looking for ways to decrease their monthly mortgage payments. First and foremost, you should be in a strong financial position to take out a home loan. Have as much cash on hand as you can for the down payment. You want your credit score to be as high as possible and to reduce or eliminate your debt.

Another strategy to consider is to buy mortgage points. You can purchase discount mortgage points upfront to buy down the interest rate. (And thus, lower your monthly payment). Check out this buy points mortgage calculator to see if it’s worth it for your personal situation.

Home buying is complex. Whether it’s your first time buying a home or you are a seasoned investor, building a team of local experts to help you achieve your real estate goals will make way for a much smoother, more enjoyable process.