New to the home buying process? Haven't gone through it in a while? Here's a great guide to get you started on understanding the process, the costs, and the benefits of having a team of professionals helping YOU!

1. The Hudson Group
New Home Buyer’s Quick Start Guide

2. Assemble your team!
The first step in buying a home is getting pre-approved with a lender
The lender will check your credit score, ask you some questions about your job history,
your income, and bills. This is to determine your purchasing power.
We work alongside your lender to keep the process running smoothly from contract to
close! That’s why we partner with expert loan officers who have your best interests at heart
and will ensure you understand each step of the process.
Type of Loan Key Features
Conventional 3% minimum down payment. MI can be removed if
applicable. Down payment can be gifted.
FHA 3.5% down payment. MI is for the life of the loan. Down
payment can be gifted or through a grant.
VA Offered to Veterans at $0 down payment. No MI, but has
funding fee. Seller can fund closing costs.

3. Set yourself up for success!
Do not apply or open any new credit cards
Do not close any current credit cards out
Do not change jobs during the process of buying a home
Do not finance new furniture or appliances until after your closing
Do not buy a new car
Do not move large sums of money around
Do not skip a payment or be late on a payment
Do not spend your savings

4. You and your agent
Hiring an agent to represent you as a buyer costs you NOTHING
Your agent’s commission is derived from the seller’s proceeds of the home sale
Your agent is your advocate, your consultant, and your personal market expert
Make a list of your top ‘must have’ items, for example:
1. School district
2. Open concept kitchen and living room
3. Storage shed
4. Community pool
5. Game room

5. Information About Brokerage Services (IABS)
Setting the ground rules
Your agent will have you review and
initial the IABS. This is a required form
that defines the roles and duties of an
agent and real estate broker.
*This form is for informational purposes only
and is not a contract.

6. Wire Fraud Warning
Preventing Wire Fraud
This is another required form intended
to inform buyers and sellers about the
potential theft of funds from fraudulent
emails or phone calls from criminals
posing as real estate professionals.
*This form is for informational purposes only
and is not a contract.

7. The OFFER
Once you find the perfect home, it’s time to make an offer!
Simply stated, you’re trying to spend as little as possible while the seller is trying
to make as much profit as possible.
Your expert agent will look at the recent sales and comparable properties in the
area and offer advice when making an offer.
There are multiple offer strategies dependent on the current market conditions
and price range of the home. Trust the knowledge of your agent when deciding
on the initial offer price!
Once your offer is accepted, you’ll have pre-negotiated out-of-pocket expenses.

8. Out-of-pocket Expenses
Earnest Money – Payable to the Title Company
For the seller to take the property off of the market they will expect Good Faith Funds. This deposit can be as
little as $500 up to $5000 depending on the size of the purchase. This is credited back to you at closing.
Option Fee – Payable to the Seller
This buys us the time we need to complete a full home inspection and negotiate any needed repairs. We can
withdraw our offer with only a small monetary penalty at risk in the event we find something wrong with the
property or you just want out. This is kept by the Seller in the event you withdraw during the option period. If
you continue with the sale, this is usually credited back to you at closing.
Your agent will work together with the seller’s agent to negotiate the best and most
acceptable terms for all parties involved. This includes the sales price, closing costs, home
warranty, closing cost allowances, repairs, and much more.

9. The INSPECTION
Not mandatory, but ALWAYS recommended!
Home inspections can cost from $400-$550. This is money well spent! An
inspector will devote several hours at the house detailing the condition of the
home, including the roof, HVAC, sprinklers, and pests.
If there are major defects and you do not wish to go forward with the sale, now is
the opportunity to walk away and get your Earnest Money back and start your
search again. In this case, the seller keeps your option fee.
If you wish to continue, you should review the report and decide which items are
considered deal breakers and are for the honey-do list. If you go forward, the
option fee will be credited back to you at closing.

10. The INSPECTION
If there are defects and you still wish to continue there are several options:
1. Ask the seller to fix the issues before closing date
2. Ask for an allowance to be given to have the issues fixed by you after closing
3. Move forward regardless of the inspection report without requesting repairs
Sometimes the seller will agree to these requests and sometimes they will refuse. Often
there is a compromise on both sides because all parties want to make sure this sale takes
place.

11. The APPRAISAL
Mandatory, if you are financing your purchase
Home appraisals can cost from $500-$650. The purpose of the appraisal is to ensure the
house is worth what the lender is loaning. A lender will not loan more money than the
property is worth.
If the appraisal comes back lower than the agreed upon sales price there are several
options:
1. The agent can challenge the appraisal and offer new data for consideration
2. The seller can lower the sales price to meet the appraisal value
3. The buyer can produce the difference out of pocket
4. The buyer and seller can negotiate and agree to a solution acceptable to both parties

12. The CLOSING
The title company has been working to make sure ownership of the property can legally
transfer to you. They are checking to make sure no unknown parties have a claim of
ownership. The title company has been preparing and submitting the necessary
documents to execute the sale of the property.
When the title company completes their work the lender will be notified. Once the lender is
notified the title is clear, they will once again look at your file. If all requirements have been
met they will issue the final approval, known as the Clear to Close.
On closing day, you be responsible for your portion of the final closing costs. Your lender
and the title company will have given you what that amount is ahead of time. Depending on
the negotiated agreement and type of loan, these costs can vary significantly. It’s another
reason working with a professional realtor and an expert loan officer is extremely
important.

13. Call or Email us to find out your options and to get started!
You can also visit us at https://www.facebook.com/myhudsongroup

14. Each Office Independently Owned and Operated. 17_191524