find the one
skip the regrets.
Your guide to looking beyond the listing, asking better questions, and buying a home with your eyes wide open.
Welcome
Buying a home is exciting. It can also be a lot.
There are numbers to understand, neighborhoods to consider, inspections to navigate, contracts to sign—and somewhere in the middle of all that, you're supposed to decide whether a house actually feels like home.
That's where I come in.
About This Guide
I created this guide to give you a clearer picture of what happens between “I think I’m ready to buy” and “I got the keys.”
We’ll talk about more than listings and loan approvals. You’ll learn how to think about your real budget, what to pay attention to while touring homes, how offers and negotiations work, what inspections can uncover, what happens during escrow and title, and what to expect as closing day approaches.
You don’t need to memorize any of it, and you certainly don’t need to become a real estate expert overnight. That’s my job.
What I want is for you to understand the process well enough to ask good questions, recognize your options, and buy with your eyes wide open.
So fall in love with the house. Get excited. Picture your furniture in the living room.
— Catt Johnson
Neighborhood Experts Real Estate
Determining Your Budget
What you can borrow and what you want to spend are two different numbers.
Getting pre-approved tells you what a lender may be willing to lend you. It doesn't tell you what monthly payment will feel comfortable with the rest of your life.
Before we start looking at homes, I want you to think beyond the purchase price. Your mortgage is only part of what it costs to own a home. HOA fees, utilities, insurance, property taxes, maintenance, repairs, and future improvements all compete for room in that monthly budget.
"The goal isn't to buy at the top of your approval. It's to buy at a number that still lets you live your life."
Look Beyond the Mortgage
When you're deciding what feels comfortable, account for:
Property Taxes & Homeowners Insurance
These can change over time, which means your monthly payment can change too.
HOA Dues & Assessments
If the property belongs to an association, understand both the regular dues and the possibility of additional assessments.
Utilities
Water, sewer, garbage, electricity and gas add to the true monthly cost.
Maintenance & Repairs
Roofs, gutters, HVAC, plumbing, pest control and the inevitable "Well, that wasn't on the inspection report."
Appliances & Home Systems
Eventually, something will need replacing.
Improvements
Paint, flooring, landscaping and renovations have a funny way of becoming a wish list before the moving boxes are unpacked.
Closing Costs & Cash Reserves
Buying the house shouldn't leave your bank account gasping for air.
Financing Options
Your mortgage should fit more than the house. It should fit your life.
There's no one-size-fits-all mortgage. The right financing depends on your financial picture, how much you want to put down, what you're comfortable paying each month, and your plans for the future.
Understanding the basic options will help you have a better conversation with your lender and make a decision based on the whole cost of the loan — not just the interest rate.
Conventional Fixed
A predictable option with an interest rate that stays the same for the life of the loan. Depending on your down payment, mortgage insurance may be required.
Adjustable-Rate (ARM)
Offers a fixed rate for an initial period before the rate can adjust. It can make sense for certain buyers depending on their financial strategy and how long they plan to keep the loan.
FHA
A government-backed loan with more flexible down-payment and credit requirements, often considered by first-time and lower-down-payment buyers.
VA
Available to eligible veterans, active-duty service members, and certain surviving spouses, with benefits that can include no down payment and no monthly mortgage insurance.
USDA
Designed for eligible buyers and properties in designated areas and may provide a no-down-payment option.
Jumbo
For loan amounts above conforming limits, typically with different requirements for credit, down payment, income, and cash reserves.
House Hunting
Don't just tour the house. Test-drive the life.
It's easy to get distracted by a beautiful kitchen, great staging, or the backyard you've already mentally filled with patio furniture. But you're not just buying what's inside the four walls.
You're buying the street, the commute, the noise, the neighbors, the maintenance — and the way everyday life will actually feel there.
So when we tour, look beyond what photographs well.
Know Your Non-Negotiables
Before you start looking, separate your must-haves from your nice-to-haves. The right house may not check every box, but it shouldn't require you to compromise on the things that matter most to how you actually live.
Come Back at a Different Time
A neighborhood can feel completely different at 8 a.m., 5 p.m., and 10 p.m. Pay attention to traffic, street parking, noise, lighting, and how the area feels when people are actually home.
Walk the Block
Don't make your decision from the driveway. Look at sidewalks, street lighting, nearby businesses, transit access, neighboring properties, and anything else that will become part of your everyday routine.
Put Your Phone to Work
Check cell reception inside and outside the house. Pull up your regular commute. Look at nearby grocery stores, parks, restaurants, healthcare, and the places you'll actually use — not just the attractions highlighted in the listing.
Look Past the Pretty
Paint colors can change. Countertops can change. The expensive stuff is usually less glamorous. Pay attention to the age and condition of the roof, HVAC, plumbing, electrical systems, windows, drainage, and other major components. We don't need to diagnose them during a showing — that's what inspections are for — but we do want to notice what deserves a closer look.
During the Home Buying Process
Once you're underway, keep things boring.
Once you're pre-approved and actively shopping for a home, your financial picture matters all the way through closing. A new purchase, account, or change that seems harmless can create questions for your lender — or affect your financing altogether.
Until the keys are officially yours, think twice before making any major financial moves.
Don't Open New Credit
That new furniture can wait. Avoid opening credit cards, financing appliances, buying a vehicle, or taking on new debt without talking to your lender first.
Don't Move Money Around
Large deposits, withdrawals, or transfers between accounts may need to be documented. Before moving significant amounts — or accepting financial help — check with your lender.
Don't Change Jobs Without a Conversation
Your employment and income are part of your loan approval. Talk with your lender before making any significant employment change.
Don't Spend Your Closing Money
Between your down payment, closing costs, moving expenses, and the inevitable first-week Home Depot run, you're going to need cash. Keep those funds exactly where they need to be.
Don't Assume You're Done Once You're Approved
Your lender may verify information again before closing. Keep paying bills on time, respond quickly to documentation requests, and avoid financial changes without checking first.
Making an Offer
When you find the right home, it's time to make your move.
Making an offer is exciting, but it's also where preparation matters. The goal is to submit an offer that reflects the home's value, fits within your budget, and gives you room to navigate whatever comes next.
Know Your Budget
Have your financing and pre-approval in place before making an offer. Know what you can comfortably afford — not simply the maximum amount you've been approved to borrow.
Define Your Bottom Line
Decide how far you're willing to go before emotions take over. Knowing your limit ahead of time makes it easier to negotiate confidently and recognize when it's time to walk away.
Make an Informed Offer
Consider recent comparable sales, the condition of the property, and current market conditions when deciding what you're willing to offer.
Expect Some Back-and-Forth
Not every offer is accepted exactly as written. The seller may counter on price, timing, or other terms. Stay flexible, but don't lose sight of what matters most to you.
Lean on Your Agent
Your agent can help you understand the terms of the offer, evaluate your options, navigate negotiations, and keep the process moving forward.
"A good offer isn't about getting caught up in the moment. It's about making a decision that still feels good when the excitement wears off."
The Power of Negotiation
Negotiation isn't just about the price.
When most first-time buyers hear "negotiation," they think of one thing: getting the seller to lower the price.
But the purchase price is only one part of the conversation. Depending on the situation, you may also negotiate repairs, closing costs, timelines, appliances, or a credit at closing. Understanding those options can give you more ways to structure a deal that works for you.
What Is a Credit at Closing?
A credit at closing is money the seller agrees to contribute toward certain buyer expenses as part of the transaction.
You Agree on $500,000
You and the seller agree on a purchase price of $500,000.
Inspection Finds an Issue
The inspection uncovers something that needs attention — a repair that costs money.
$5,000 Credit at Closing
Instead of lowering the price, the seller agrees to a $5,000 credit so you bring less cash to closing.
Why Does That Matter?
For a first-time buyer, keeping more cash in the bank after closing can be valuable. Moving expenses, furniture, repairs, maintenance — and all those little things nobody warned you you'd suddenly need at Home Depot — add up quickly.
What Else Can Be Negotiated?
Purchase Price
Repairs
Seller Concessions
Closing Timelines
Contingencies
Appliances & Personal Property
Possession Agreements
"A lower purchase price isn't the only way to create value in a negotiation. Sometimes the structure of the deal matters just as much as the number at the top."
Who Typically Pays for What?
Let's talk about the money changing hands at closing.
Buying a home comes with expenses beyond your down payment. Some costs are typically associated with the buyer, others with the seller, and some may be negotiated as part of the transaction.
Knowing what to expect ahead of time makes that closing statement a whole lot less intimidating.
Down Payment
The portion of the purchase price you're paying rather than financing.
Loan & Lender Costs
Fees associated with obtaining your mortgage, which vary by lender and loan program.
Inspection Costs
Home and any additional inspections you choose to complete.
Buyer Typically Pays
Lender's Title Insurance
A policy protecting your lender's interest in the property.
Homeowners Insurance
Your lender will generally require coverage to be in place before closing.
Recording & Escrow Costs
Certain fees associated with completing and recording the transaction.
Buyer-Agent Compensation, if applicable
More on this one below.
Seller Typically Pays
Real Estate Excise Tax
Owner's Title Insurance
Payoff of Existing Loans or Liens
Outstanding Amounts at Closing
Any amounts that must be satisfied at closing.
Applicable Escrow Costs
Seller Concessions or Credits
Any agreed to in the Purchase & Sale Agreement.
Buyer-Agent Compensation
The seller has agreed to contribute, if any.
How Does Your Buyer's Agent Get Paid?
This deserves its own explanation because there are two different pieces to understand.
For example, if your Buyer Agency Agreement provides for 3% compensation and the seller agrees to pay 2.5%, the remaining 0.5% would still be owed by you unless another arrangement is made. If the seller agrees to pay the full amount, you would not have a remaining balance to cover.
Your Buyer Agency Agreement
Establishes the compensation owed to your buyer's agent for their services.
The Purchase & Sale Agreement
Specifies how much, if any, the seller will contribute toward that compensation.
The Home Inspection
An inspection is about knowing what you're buying.
Start With a General Home Inspection
A general home inspector evaluates the home's major systems and components and identifies areas that may need further investigation.
Your inspector isn't necessarily the final expert on every system in the house — and they don't need to be. If they discover something that warrants a closer look, they may recommend a secondary inspection by an appropriate specialist.
When an additional inspection is recommended, the inspection timeline established in the Purchase & Sale Agreement can expand to allow time for that secondary inspection to be completed.
Roofer
Electrician
Plumber
Sewer Professional
Other Expert
My General Rule of Thumb:
If you can see it, you're buying it.
Cloudy Windows
If you walk through the house and see cloudy windows, you're buying cloudy windows.
Worn Carpet
If the carpet is worn, you're buying worn carpet.
Deck Needs Staining
If the deck obviously needs staining, you're buying a deck that needs staining.
Title Insurance & Escrow
Before the home becomes yours, we need to make sure ownership can actually transfer to you.
Buying a home isn't just about purchasing the house you can see. You're also acquiring the legal ownership — or title — to the property.
Before closing, the title company researches the property's ownership history and public records to identify matters that may affect that ownership, such as existing mortgages, liens, easements, judgments, unpaid taxes, or recorded restrictions.
What Is Title Insurance?
Title insurance provides protection if certain covered title problems arise. Unlike homeowners insurance, which protects against things that may happen after you own the home, title insurance generally deals with covered ownership or title issues connected to the property.
Owner's Title Insurance
Protects your ownership interest in the property, subject to the terms and exclusions of the policy.
Lender's Title Insurance
Protects your mortgage lender's financial interest in the property.
What Is the Preliminary Title Commitment?
Before closing, a preliminary title commitment provides information about the property and the title insurance that is expected to be issued. It can identify things recorded against or affecting the property, including:
Mortgages & Liens
Easements
CC&Rs & Recorded Restrictions
Property Tax Information
Legal Description
Some items are simply part of owning that particular property. Others may need to be addressed before the transaction can close.
And What Does Escrow Do?
Think of escrow as the neutral middle of the transaction. Escrow helps coordinate the paperwork and funds needed to complete the sale. Once the required documents are signed, funds are ready, and the conditions for closing have been satisfied, the transfer documents can be recorded and the property officially changes hands.
The Simple Version
First-time buyers don't need a title-industry vocabulary lesson. They need three concepts untangled:
Title
Can ownership of this property be transferred as expected, and what recorded matters affect it?
Title Insurance
What protection do I have if a covered title problem arises?
Escrow
What needs to happen with the documents and money to get this transaction closed?
Pre-Closing Checklist
Arrange Closing Funds
Confirm exact amounts for down payment and closing costs. Arrange wire transfer or cashier's check — always verify instructions directly to avoid wire fraud.
Get Homeowner's Insurance
Shop for a policy meeting your lender's requirements. Coverage must be active by closing date; provide proof to your lender or escrow officer.
Review HOA Rules
Understand restrictions, fees, and community guidelines before closing so you're fully prepared for life in your new community.
Schedule Final Walkthrough
Confirm the property is in agreed-upon condition and all negotiated repairs are complete before you take ownership.
Research Care Providers & Book Movers
Find local doctors, dentists, and vets early — some have waitlists. Book your moving company as soon as your closing date is confirmed.
Choosing the Right Agent
You're not just hiring someone to show you houses.
Especially as a first-time buyer, your agent will be one of your main resources throughout the transaction. They'll help you understand the process, prepare and navigate offers, communicate with the other parties involved, keep track of important timelines, and help you understand your options when decisions need to be made.
So don't choose an agent simply because they were the first person to answer the phone. Choose someone you trust to tell you what you need to hear — even when it isn't what you were hoping to hear.
Ask About Their Experience
How well do they know the market you're buying in? How often do they work with buyers? Are they comfortable explaining contracts, inspections, negotiations, and the closing process? You shouldn't feel embarrassed asking questions. A good agent should be able to explain what's happening in language you actually understand.
Pay Attention to How They Communicate
Buying a home moves quickly at times. Ask how your agent communicates, what you can expect from them, and how they handle situations when something unexpected comes up. You want someone who keeps you informed without making an already stressful process feel more stressful.
Understand Your Buyer Agency Agreement
Before working together, make sure you understand the agreement between you and your agent — including the services they'll provide, the length and terms of the agreement, and how your agent will be compensated. If something isn't clear, ask before you sign.
Look for an Advisor, Not a Salesperson
A good buyer's agent should help you evaluate the home — not convince you to buy it. Sometimes the best advice an agent can give you is: "I don't think this is the one." You want someone who is just as comfortable helping you walk away from the wrong house as they are handing you the keys to the right one.
And Yes, the Brokerage Matters
Your agent doesn't work in a vacuum. Learn about the brokerage they're affiliated with, its reputation, and the support and resources available behind the agent.
"Choose someone you trust to tell you what you need to hear — even when it isn't what you were hoping to hear."
Real Estate Terminology
A plain-language reference for the terms you'll encounter throughout the home buying process.
Terms Defined
Full Alphabet Covered
Plain Language
No jargon, just clarity
Addendum — An additional document or provision added to an existing contract or agreement.
Agency — The relationship created when a real estate broker represents a buyer or seller. An agent owes specific duties to their client, including confidentiality, reasonable care, loyalty, accounting, disclosure, and advocacy.
Annual Percentage Rate (APR) — A percentage used to show the annual cost of borrowing, including the interest rate and certain loan costs. It can be useful when comparing loan options.
Appraisal — A professional opinion of a property's value completed by a licensed or certified appraiser, often required by a lender during the mortgage process.
As Is — Indicates that the seller is offering the property in its existing physical condition. It does not eliminate a seller's obligation to make disclosures required by law.
Assumption — An arrangement in which a buyer takes responsibility for an existing loan on the property, generally subject to the lender's requirements and approval.
Beneficiary — In a deed of trust, the lender or party whose financial interest is secured by the property.
Buyer-Broker Agreement — An agreement between a buyer and real estate brokerage establishing the terms of their working relationship, including services, responsibilities, representation, and compensation.
Chain of Title — The history of ownership transfers for a property from previous owners to the current owner.
Close of Escrow — The point in the transaction when closing requirements have been satisfied and the transfer documents are recorded, completing the transfer of ownership.
Closing Disclosure — A document provided before closing that shows the final details of your mortgage, including loan terms, projected payments, and closing costs.
Closing Statement — A final accounting of the money involved in the transaction, including charges and credits and the amount each party is responsible for at closing.
Cloud on Title — A claim, document, lien, or other issue that may create uncertainty about ownership of the property and may need to be addressed.
Comparable Sales (Comps) — Recently sold properties with characteristics similar to the property being evaluated. They are commonly used to help determine market value.
Conditions, Covenants & Restrictions (CC&Rs) — Recorded rules and restrictions governing how property within certain communities may be used. They're commonly associated with homeowners associations.
Contract — A legally enforceable agreement between parties. Real estate purchase agreements generally must be in writing and signed.
Contingency — A condition written into a contract that must be satisfied for certain obligations to proceed. Common examples involve financing, inspection, appraisal, and title.
Conveyance — The legal transfer of an ownership interest in real property.
Counteroffer — A response to an offer that proposes different terms. Once a counteroffer is made, the parties can accept, reject, or continue negotiating.
Deed — A legal document used to transfer ownership of real property from one party to another.
Deed of Trust — A document used to secure a real estate loan with the property. Washington commonly uses deeds of trust in residential financing.
Deposit — Money provided by a buyer in connection with an offer or purchase agreement. Depending on context, this may refer to earnest money.
Disclosure — Information provided about facts or conditions that may be relevant to a real estate transaction.
Down Payment — The portion of the purchase price the buyer pays from their own funds rather than financing through the mortgage.
Earnest Money — Money a buyer deposits after reaching an agreement with the seller to demonstrate their commitment to the transaction. What happens to the earnest money depends on the terms of the purchase agreement.
Easement — A legal right allowing someone to use another person's property for a particular purpose, such as utilities or access.
Escrow — A neutral third party that helps carry out the instructions of the transaction and handles documents and funds associated with closing.
Escrow Account — An account commonly maintained by a mortgage lender or servicer to collect money for expenses such as property taxes and homeowners insurance.
Fair Market Value (FMV) — The price a willing buyer and willing seller would reasonably agree upon under normal market conditions.
Fixtures & Personal Property — Fixtures are items attached to the property in a way that generally makes them part of the real estate. Personal property is movable and isn't automatically included in the sale. The purchase agreement should clearly identify items that are included or excluded.
Homeowners Association (HOA) — An organization that manages certain shared responsibilities, rules, amenities, or common areas within a community. Owners may be required to pay dues and follow governing documents.
Homeowners Insurance — Insurance that provides coverage for the home and certain losses or liabilities according to the terms of the policy.
Homestead Exemption — Legal protection that may protect a certain amount of equity in a person's primary residence from certain creditor claims.
Lien — A legal claim or encumbrance against property, often connected to a debt or financial obligation.
Listing Agreement — The agreement between a seller and a real estate brokerage establishing the terms under which the brokerage will represent the seller.
Loan Estimate — A standardized document generally provided after applying for a mortgage that shows estimated loan terms, monthly payments, interest costs, and closing costs.
Mortgage — A loan used to finance real estate, secured by the property being purchased.
Mortgage Insurance — Insurance that protects the lender against certain losses if the borrower defaults. Depending on the loan program and down payment, mortgage insurance may be required.
Multiple Listing Service (MLS) — A database real estate professionals use to share detailed information about properties listed for sale.
PITI — Principal, Interest, Taxes and Insurance. These are the primary components commonly included when discussing a buyer's total monthly housing payment.
Points — Fees calculated as a percentage of the loan amount. One point equals 1% of the loan. Discount points may be paid upfront to obtain a lower mortgage interest rate.
Power of Attorney — Legal authority allowing one person to act on behalf of another person in specified matters.
Purchase Agreement — The contract between the buyer and seller establishing the price, terms, conditions, and obligations of the real estate transaction.
Quitclaim Deed — A deed transferring whatever ownership interest the grantor may have in a property without guaranteeing that the grantor has clear or valid title.
Recording — Filing certain real estate documents with the appropriate county so they become part of the public record.
Right of First Refusal — A contractual right giving a person or party an opportunity to purchase a property before the owner sells it to someone else.
Subdivision — Land that has been divided into smaller individual parcels or lots through an applicable governmental approval and recording process.
Title — The legal concept of ownership rights in real property.
Title Commitment — A document issued before closing describing the status of title, requirements for issuing title insurance, and recorded matters that may affect the property.
Title Insurance — Insurance protecting against certain covered defects or claims involving title. Residential transactions commonly involve an owner's policy protecting the homeowner and a lender's policy protecting the mortgage lender.
Warranty Deed — A deed used to transfer ownership in which the grantor provides certain warranties regarding title.
1031 Exchange — A transaction that may allow an owner of qualifying investment or business real estate to defer certain taxes by exchanging it for qualifying replacement property, subject to federal tax requirements.
Ready to Make Your Next Move?
Whether you're ready to start looking or simply have questions about what comes next, schedule a conversation and we'll start wherever you are.
Catt Johnson
Neighborhood Experts real estate
(253) 303-2604