Buying a home is a give-and-take process. But it’s more than just giving your money and taking the keys. The contract process is wrapped around a series of contingencies and disclosures. Let’s break it down.

Contingencies are “walk-away” clauses in a contract that allow a buyer to back out of a deal if certain conditions aren’t met. Disclosures are the seller’s responsibility and reveal any and all property defects. These contract stipulations serve both sides of a real estate transaction — protecting you as a buyer, and protecting the seller too. All of them must be resolved, one way or another, prior to completing the sale.

CONTINGENCIES: FROM APPRAISALS TO TERMITES

Think of a contingency as an “if-then” proposition. For example: “If I’m able to sell my current home, then I’ll buy yours.” It’s likely that several standard contingencies are already included in the purchase contract, such as the sale being subject to a property appraisal. This is an important stipulation because if a property appraises below the offer value, the buyer can be on the hook to the lender to make up the difference. You definitely want this contingency to be a part of any binding offer.

Here are some other common scenarios in which a contingent offer can come into play.

1. Financing: Perhaps the most common stipulation is a contract contingent on the buyer obtaining financing. This way, you’re not penalized if you’re unsuccessful in qualifying for a home loan, and the seller doesn’t have his property off the market for an extended period of time for a nonqualified buyer. Here’s an example.
2. Inspection: You should always have your potential new home thoroughly reviewed by a qualified home inspector. Remember, the appraisal is a valuation of the home for the lender; it doesn’t require a detailed examination of the property’s physical condition. A home inspector will perform a comprehensive analysis of the structure and mechanical systems — and most importantly, identify items that need to be repaired or replaced. You can then negotiate for these issues to be resolved as a part of a contract inspection contingency.
3. Sale of a prior home: If you include this contingency, your offer is subject to the completion of the sale of your current house. A chain of sale clause is most often based on a specific time period (generally 30-60 days), after which your contract is forfeited. Such a provision might look like this. In a seller’s market, including this contingency puts your offer at a serious disadvantage.

Other standard contingencies can include such things as a termite certification and the definition of a reasonable time period to close the sale. But there may be additional conditions that you want to include in an agreement.

SOME CONTINGENCIES YOU CAN’T CONTROL

A few conditions of the sale are out of your control, such as lender approval of your loan or the home’s appraisal coming in with a sufficient value. Others will be your responsibility, like obtaining homeowners insurance — although a carrier has to approve the property for coverage, so that’s something you can’t fully control, either.

Another common transaction condition can be allowing the buyer to complete the sale of a prior home or providing sellers time to find their next residence. Either of these conditions needs to have set time limits.

WHAT YOU CAN CONTROL

A home inspection is in your best interest and allows you to back out of the deal if serious matters are uncovered. Your contract may stipulate that repairs must be made if problems are uncovered, but that can mean closing delays while contractors are scheduled and repairs are approved. You may prefer to renegotiate the sale price if significant improvements are needed.

In hot markets, buyers often pay for a pre-inspection report prior to making an offer — or forgo an inspection altogether. In other cases, sales contracts may be written with “a right to void.” This means you won’t require repairs that are suggested by the home inspection report but can cancel the sale without penalty.

To minimize delays at closing, you might decide to accept a previous condition “as is” by allowing a contingency deadline to expire. It’s a deliberate decision to offer a concession and can be used as the basis for a new condition at closing, such as a credit toward fees or some other discount. Be aware, though, that some lenders will restrict the amount of credits allowed.

A worst-case scenario can involve canceling the sale altogether. That’s only justified by a clear violation of a contingency by either party. If the seller has neglected to fulfill a condition, you’ll likely get your earnest money back from escrow. Not so if the failure to meet an obligation is on you.

DISCLOSURES: WHAT’S WRONG WITH THE PROPERTY?

Sellers are obligated to tell you all known defects, environmental hazards, past damage and even homeowner association issues regarding the property in question. This is your first opt-out opportunity and a critical juncture in the homebuying process.

But disclosure laws vary from state to state — and while you hope the seller will reveal major property problems, you might not expect him to tell you about the noisy neighbors’ hot tub parties, or the fact that the home sits beneath the flight path of landing jumbo jets.

Your agent (on your behalf) will obtain from the seller all legally required disclosures, which are generally due within days of signing the sales agreement. A lack of proper disclosure can lead to legal action. It’s best if all parties act in good faith, but in house hunting, remember the credo “buyer beware.” (Read ahead for a complete checklist to guide you through the offer process.)

TYPES OF DISCLOSURES

A property’s background may reveal a variety of conditions, from neighborhood nuisances to on-site deaths. Unfortunately, because of wide-ranging local and national laws, you can’t always be sure what the owner is legally bound to tell you without asking a lawyer. There are four common disclosure forms:

1. Standard disclosures: Most state regulatory commissions and real estate associations provide boilerplate forms that a seller can use to check off what is — and isn’t — a problem. While it’s likely such forms will include major issues, it may not include details of homeowner association obligations, missing mechanical items or so-called “stigmatized” properties.
2. Natural hazards: This document will detail environmental and natural hazards, including fire, flood and earthquake zones.
3. Lead paint: Federal law requires owners of houses built before 1978 to disclose all known lead-based paint and hazards in a home. Buyers must also be given a 10-day window to test the house for lead, if they desire.
4. Sold “as is” exemption: While sellers are required to share all known defects of a property, the transaction can be completed “as is.” When both parties agree, the seller will not make or pay for any repairs, corrections or replacements, regardless of what’s found in an inspection. The buyer is essentially waiving all rights. This can be very risky for you as a buyer.

START THE CLOCK

Keep track of contingency deadlines so nothing sneaks up on you — and so you won’t miss an important date to enforce a condition that the seller must meet. Having a calendar with all deadlines listed, perhaps even with pre-deadline notices a few days ahead, will help you stay on top of critical contingencies.

Throughout this process you’ll want to consult your agent to guide you along; in some more complicated cases you may even want the advice of an attorney. It’s easy to get tripped up by legal jargon, and sometimes what’s not in writing does the most damage.

You’ve found a home you love, and now you’re ready to make an offer. This is where the process really begins to get serious and the paperwork really starts to build.

Buying a home isn’t a handshake deal; verbal agreements just don’t count. That’s why everything important — in fact, any little detail expected to be a part of the terms of sale — must be written down and specifically agreed to. There are no shortcuts.

HOW THE OFFER PROCESS WORKS

No matter how excited you are about the prospect of your new place, at this stage of the process you have to be prepared to negotiate or potentially even walk away if the terms aren’t right for you or if you feel pressured.

You’ve done your homework and know your local market. You have a list of sales comparable to the house you’re interested in, and you’re ready to make a smart offer. Here’s how the process works:

1. You make a written offer
2. The seller accepts, counters or declines the offer
3. If it’s accepted, you move on to the next step
4. If the seller makes a counteroffer, you either accept it or make a new offer — and go back to step 2
5. If the offer is refused, you can make a new offer or begin a new round of house hunting

Your agent will do all this work on your behalf. (Read ahead for more on how your agent will help you through the offer process.)

PUTTING TOGETHER THE OFFER PAPERWORK

The written offer is legally binding, so in most cases a simple letter won’t work. There are many state, and sometimes local, laws guiding the process, so you’ll want to cover all the bases by using a legally approved form.

Your real estate agent can provide you with a Residential Purchase Agreement that complies with applicable state and local laws. In some states, it is common for a lawyer to be a part of the offer paperwork process.

Some buyers are encouraged to write a personal letter to accompany their offer, hoping to gain an emotional edge over competing buyers or to explain why a bid based on comparable sales might be reasonable and justified. That’s fine; just don’t count on that letter having any legal bearing on the transaction.

A written offer may contain these elements, among others:

• A legal address and sometimes the legal property description
• Details regarding the purchase price and terms
• The amount and terms regarding earnest money
• A mandate that the seller will provide clear title to the property
• Details regarding any buyer’s participation in closing costs or other fees, as well as how certain taxes and expenses will be prorated between the buyer and the seller at closing
• The date and time of the offer’s expiration
• A projected loan closing date
• Other state-required provisions or disclosures
• Any contingencies that the deal is subject to

CONTINGENCIES AND DISCLOSURES

At least a couple of standard contingencies will likely be noted in the written offer. These are things that need to happen before the sale can move forward. Your offer will most likely include some standard contingencies, such as one stating that the deal hinges upon you obtaining financing within a specified time. Another may require the completion of a home inspection. There could be several others.

Although you have to protect your interests and gather enough information to make a wise purchase, contingencies can — especially in hot markets — act as roadblocks to getting a deal done. It’s best for both the buyer and the seller to put only enough stipulations in the contract to cover the necessary bases; no more.

Seller disclosures, on the other hand, are usually required by law. This is information regarding the property and improvements that the owner is aware of that may affect its value. Disclosures could include natural hazards, structural issues or other substantial defects. You’ll want to review these carefully before committing to a purchase.

PUTTING CASH ON THE LINE

When you make an offer, in most cases you’ll be required to submit a deposit — called earnest money — that the seller will hold in escrow as good-faith money. This may be anywhere between 1% and 3% of the total purchase price. The offer agreement should detail under what circumstances you’d have to forfeit the money (for example, in the event you back out of the deal without a valid reason), or returned by the seller (such as in the event your offer is rejected).

IT’S A YES: WHAT’S NEXT?

Remember, a phone call, handshake or verbal commitment doesn’t make it official; it’s not a done deal until both parties sign the offer agreement. Once that’s done, after the brief celebration and sigh of relief, you should be ready to get down to the serious business of closing the sale. That will likely include a home inspection, and it will definitely mean starting the process of finalizing your financing through the lender.

That can take an average of 30 to 60 days to complete.

MAKING AN OFFER ON A DISTRESSED PROPERTY

If you are making an offer on a pre-foreclosed home or real-estate owned (REO) property, be prepared for an extended offering process, especially if it’s a short sale. Short sales are pre-foreclosure transactions in which a house is being sold by the owner for less than what is owed to the lender.

TAKING IT STEP BY STEP

The foundation of a good home purchase is the initial written offer. To make sure you don’t miss any of the moving parts involved in the process, we’ve developed an offer checklist. That’s ahead.

Highs and lows: Buying a house is replete with them. You’ll have great days, like when you find the perfect house, and not-so-great days, like when you learn your mortgage rate has gone up just prior to closing.

Homebuying can be full of “gotchas,” the stuff that will try to sneak up on you and trip you up. Keep your eyes open for these potential surprises.

TRADE-OFFS AND COMPROMISES

A place of your own might be a three-bed, two-bath house with a sprawling lawn or a cozy condo with a patch of patio. Either way, it’s home. Finding your next address will be a process involving trade-offs and compromises. The condo with the great view has a creaking, painfully slow elevator. The house with the perfect kitchen has a master bath from the ’80s.

Paint colors you can fix, but a load-bearing wall is likely staying right where it is. When house hunting, you want to put yourself into the day-to-day of living in that space. Parking here, sleeping there. Will you get tired of climbing these stairs? And what if kids are on the way?

CURBED BY A COVENANT

Many neighborhoods, subdivisions and communities have covenants — strict regulations that prohibit certain improvements, activities and uses of a property. (These are sometimes called CC&Rs, for “covenants, conditions and restrictions.”) You own the place; certainly you can put up an eight-foot privacy fence, right? Or a basketball goal in the driveway? Perhaps not. It might be restricted by the covenants of the homeowners association, or HOA.

Residential areas, condo associations and neighborhood associations can draft architectural and use standards as part of deed restrictions to protect the rights of many. These rules, along with applicable local zoning laws, can cover many things: pets, parking, appearance, personal conduct. Certain home-based businesses might be regulated or forbidden. Common areas might have a visitor limit. Parking in front of a property might not be allowed.

Before you buy, you’ll want to know what restrictions are in place and whether the home you’re considering is compliant. You surely don’t want to buy into an existing problem.

HIDDEN FEES AND OTHER EXPENSES

In addition to closing costs as well as one-time and ongoing expenses such as homeowners insurance and property taxes, there are some other add-ons to consider.

• Homeowners association or condo fees: Not only can HOAs govern property aesthetics and use, they also usually collect fees for common-area maintenance and administrative costs. You’ll want to find out current fees, how often they’ve been raised in the past and whether there have been any special assessments. If your home falls under an HOA, you might want to attend association meetings to make sure your ideas are heard.
• Flood and hazard insurance: Your lender may require the purchase of specialized insurance in areas prone to flooding or other natural hazards.
• Major maintenance, such as periodic exterior painting and the occasional roof replacement.
• The higher utilities that come with a larger living space.
• Seasonal costs, such as holiday decorations, spring flowers and plants, miscellaneous home improvements, winterizing, yard care and snow removal.

Bear in mind some of these may also involve paying qualified pros to do the work: plumbers, carpenters, landscapers, electricians and handymen.

REAL ESTATE AGENT FEES

The seller of a home usually pays the commission, which is deducted from the sale proceeds. Often that commission is split between the listing and buyer’s agents, so even your agent is paid from the proceeds of the sale.

All of this can be negotiated — in or against your favor — depending on how competitive the housing market is where you are. You might also be able to have some or all of the closing costs paid by the seller, though that’s not very likely in a hot market.

FEES THAT MAY BE LOCATION-SPECIFIC

Specific fees vary according to where you live. Some states require that an attorney generate and review the paperwork for a sale. Of course, that can mean some hefty fees, too. Some jurisdictions have transfer fees; most have recording fees that are charged by the local court to record the mortgage. New York state has a “mansion tax” that is levied on homes valued at $1 million or more — as well as a suggested gratuity for the title company’s representative. That’s right, a tip! It’s customarily $100-$200.

All fees will be estimated and provided to you prior to closing, but it can be a good idea to find out what’s common in your area by asking local real estate pros and lenders.

You go to an open house and find more than 20 people checking the place out. Your offer competes against 13 others. The house sells for $130,000 above asking price, in cash, with no contingency clauses.

There are real war stories like this from hot real estate markets, where home inventory is low and the competition high. Although buying a home in a strong seller’s market can present added challenges, it’s still possible to secure a place you’ll love.

HOW TO SPOT A HOT MARKET

The easiest rule of thumb to figure out whether a housing market is hot is to look at months of unsold inventory currently on the market. Generally speaking, an inventory level of four to six months is considered balanced between buyers and sellers. Less than that is considered a seller’s market. More than that favors buyers.

The country as a whole averaged 4.4 months of inventory in 2014, according to data from Zillow. But some hot cities have seen historically low inventory. The San Francisco, Denver and Portland areas, for instance, were below two months of unsold inventory, making these markets among the country’s hottest. Philadelphia, St. Louis and New York, meanwhile, were above five months.

Once you determine your market is hot, you might want to consider whether it’s overheated. Experts use various criteria to get at this. One measure is Zillow’s “breakeven horizon,” which calculates how long you’d have to live in a home you bought to make it less expensive than renting, based on the costs of buying and renting, and historical and anticipated appreciation.

If you’re trying to buy in a hot market, follow these tips.

1. WINDOW SHOP

If you can, spend some time looking over what’s available before you get serious. Scan your favorite real estate website for new listings every day. Tour open houses. But don’t fall in love at first sight — doing so will lead you to overlook problems and, if you wind up making an offer that’s declined, suffer heartache. We know, it’s easier said than done.

The idea is to get a handle on the local market without the pressure of feeling like you need to make an offer. You’ll also learn more about the kinds of homes and neighborhoods you like, or don’t, and which features matter to you.

2. GET A GOOD REAL ESTATE AGENT

Having a good agent is particularly important in a hot market. You want someone who hears about listings as soon as they hit the market, or before. Also, a good agent knows how to make your offer stand out.

Good buyer’s agents have a track record of winning more than half of their offers, according to Edward Krigsman, a broker with Windermere Real Estate in Seattle, another hot market. They keep track of a changing repertoire of tips and techniques, and have built up relationships with listing agents.

3. DECIDE WHERE YOU CAN COMPROMISE

Some buyers see a dated kitchen and run for the door. That’s less competition for you. Finishes and appliances are easy to change. Also, finishes and architectural styles go in and out of fashion. Midcentury modern, for instance, is hot in 2015, after decades as a niche interest. Granite countertops are giving way to other materials. But it’s hard to change a floorplan, and you’re stuck with the location.

That said, if you absolutely, positively don’t mind living on a busy street or smaller lot, or beside a commercial area, you could get a deal in a neighborhood you otherwise wouldn’t be able to afford. Just be sure, because what seems like a small annoyance now may well grow over time.

4. GET YOUR FINANCING LINED UP

Talk with several lenders or mortgage brokers. Good-faith estimates will help you compare interest rates and costs, but in a hot market, you’re also looking for someone with a reputation for closing loans quickly, and delivering on promises. This leads to …

5. OFFER A QUICK CLOSING

Some sellers are in a hurry. Find out what the standard closing time is and see if you can put in an offer that would close more quickly. This might be a tiebreaker in your favor. Sellers might even accept a slightly lower offer to get the deal done fast. Sometimes, using a lender that has an established relationship with your real estate agent can help ensure a quick closing.

6. GET A PRE-INSPECTION

Once you find a home you want to make an offer on, have an inspector look it over. This could be a full inspection or a more cursory version to reveal problems that would steer you away from buying the home or, at a minimum, significantly impact your offer price. In a competitive situation, the seller is unlikely to agree to fix minor problems.

The pre-inspection will allow you to make an offer that is not subject to an inspection contingency. In a hot market, offers with such a contingency stand little chance.

Many sellers in a hot market will set a specific day for accepting offers, to give buyers time to get pre-inspections and assemble their bids.

7. WAIVE OTHER CONTINGENCIES

If you can, waive other contingencies, such as for financing. In a hot market you can pretty much forget about an offer that’s subject to selling another home, for instance.

Even if you need to get a mortgage, you can waive the financing contingency. That means that, if your financing falls through, you lose your earnest money. In such a case, it’s important to stipulate that a lender’s appraiser can access the home — otherwise you won’t get a mortgage.

You want to be careful about waiving contingencies, because they exist to protect your rights — and your money.

8. BE NIMBLE

Agents in hot markets often present offers in person and sometimes even station buyers outside, so they can quickly modify offers if need be.

Some buyers write personal notes to sellers, saying something about themselves, why they love the home and how they plan to live in it. That said, not all sellers and agents are receptive to such letters, which can introduce the possibility of Fair Housing Act violations.

FINALLY: BE PATIENT

The typical homebuyer in 2014 searched for 10 weeks and looked at 10 homes, according to the National Association of Realtors. In a hot market, a buyer might make 10 offers before winning one. After losing out on several homes, you might feel tempted to make a desperation bid or give up. Don’t do either.

Bidding too much or making an offer on a home you don’t really like will leave you resentful. You might be better off not getting a house.

If your search extends into the fall and winter, you may find the competition lets up, although there also tend to be fewer homes for sale these times of year.

Meanwhile, giving up will leave you, well, renting. That might make sense if you decide the market is overheated. It can be OK to overpay a little as a homebuyer, provided you don’t plan to sell anytime soon. Over time, the market should make up the difference.

Buying a house is exciting, intimidating and, honestly, a bit complicated. If you’re like most young home shoppers, you’ll spend close to three months just finding “your” home.

It’s an emotional roller coaster. You might find what seems the perfect place, only to learn that it’s way over your target price. And that in-your-budget “fixer-upper” is more like a demolition zone.

But there are some house-hunting hacks you can use to help you buy smart. It all starts with researching your market.

THINGS YOU CAN CONTROL, AND THINGS YOU CAN’T

You’ve no doubt heard the terms “buyer’s market” or “seller’s market.” If you’re house hunting, you want to be on the right side of that equation — in a buyer’s market. Prices are reasonable, there are lots of choices within your budget and financing is a breeze. The Goldilocks Zone. Don’t wait for it. That’s a rare combination of circumstances.

It’s more likely you’ll be house hunting in a “hot market.” Imagine walking into an open house. It’s a great home well within your budget, it’s in your ideal neighborhood — and it’s crammed with more than a dozen other couples, offers already on the table. This happens in a seller’s market.

If you do decide to wade into a hot market, here are some tips for staying sane:

• Be patient. It’s likely you won’t be able to buy the first home you fall in love with. But hang in there; a perfect opportunity may be (literally) just around the corner.
• You’ll probably have to pay quite a bit more than the list price. Keep that in mind when checking out neighborhoods that you think might be in your price range.
• Remember, a hot market is often determined by the market segment. In some areas it might be suburban single-family homes; in others it could be urban one-bedroom condos.

A real estate agent can help guide you in learning the ins and outs of your market. And there are some online tools that can assist you too. For a lot more on navigating a seller’s market, see our next story.

JUST HOW STRONG IS YOUR MARKET?

You can take the pulse of your local market right now and see where it stands. With some inside info, you’ll be able to make a smart decision about whether to buy.

One way to gauge the pulse of your market is to take a look at the local homes-for-sale inventory statistics. The National Association of Realtors publishes a monthly report detailing how many homes are for sale in the top 200 U.S. cities, how long they’ve been on the market and the median asking prices. This listing report allows you to compare your market to the national average and is ranked by volume of searches — a good clue as to the homebuying interest in your area.

You’ll also get insight about where prices are headed in your city, whether homes are selling quickly or the market is soft and just how tight inventory may be. Useful stuff. Median list price information is eye-opening all by itself.

INVESTIGATE COMPARABLE SALES

Popular real estate websites such as Zillow and Redfin offer rough estimates of individual property values. And getting help from a real estate agent can really ease the process.

An agent can provide you with a comparative market analysis (CMA) so you can feel comfortable that any offer you make is competitive and reasonable. These comparable neighborhood sales — “comps,” as they’re called — show the value of similar houses in the area, either recently sold, currently listed or whose listings have expired. That can be extremely helpful in fine-tuning your budget and ultimately in making an initial offer.

By researching a property’s last sale — local property tax assessors have databases of such transactions — you can get a rough estimation of the current price of a home. The Federal Housing Finance Agency (FHFA) offers a House Price Calculator that does just that. When you input the last purchase price and date, the tool will provide an estimated value of the home today, based on the average appreciation rate of all homes in an area. It’s a fairly rough estimate, though, because it doesn’t take into consideration the property’s actual condition, improvements that have been made or the state of the local real estate market.

KNOWLEDGE IS POWER

Knowing your local housing market is a basic first step in getting a home you’ll love — and can afford — without overpaying or missing an opportunity. It’s even more critical if you’re moving to a new city and need help in learning the lay of the land. If you’ve done a little recon, you’ll be almost ready to get to some serious house hunting.

As with any industry, the real estate business has its own jargon, rules and best practices. Eventually, if you’re like most potential buyers, you’ll decide to get some help and seek out a real estate agent. Here are some questions you may have when the time comes.

WHAT’S THE DIFFERENCE BETWEEN A REAL ESTATE AGENT AND A REALTOR?

All real estate agents are licensed by the state in which they operate. The title “Realtor” is a trademark held by the National Association of Realtors and refers to agents who are members of a local real estate association that is NAR-affiliated. These agents agree to comply with the association’s ethical standards. Of course, the sales practices of all licensed agents are guided by the laws of their state.

WHAT IS THE MLS?

A multiple listing service, or MLS, compiles properties for sale by individual firms and sellers into one comprehensive database. It’s a generic term and not really one centralized service, but rather a cooperative effort among real estate professionals.

Before the Internet brought the same information to the masses, access to MLS listings was one good reason to hire a real estate agent. Now, you can tap the latest listings from multiple sources on the Web.

WHAT ABOUT OPEN HOUSES?

These days, open houses don’t sell homes like they used to. The NAR reports that only 9% of buyers in 2014 discovered the home they eventually purchased via an open house.

Indeed, most people start their house hunting online these days. Slideshows and virtual tours have replaced aimless walking, driving and munching on stale cookies. But wandering through an open house or two can still inspire new ideas or help you explore neighborhoods you hadn’t previously considered.

WHAT ARE SOME HOUSE-HUNTING HACKS?

When you do look at properties, whether at an open house or a private showing with your agent, consider these tips.

• First off, don’t look at homes over your budget. That’s just frustrating.
• Take an extra set of eyes, someone with excellent attention to detail. But don’t bring a group of experts; one spare opinion is plenty.
• Find out why the seller is leaving. The circumstances may provide useful insight, especially regarding how motivated the seller may be — such as whether a job relocation or divorce is involved.
• Walk through the home twice. You’ll be surprised what you notice on the second go-round.
• Open every door, even if you think it’s just a closet. Hey, it might be a closet! You know how important those are.
• Take notes, keep a list of the things you see that you like and don’t like, and compare them to your checklist.
• Snap a few photos. But ask permission first.
• Bring a tape measure. That way you’ll know if your dining table, bed or sofa will fit in a room.
• Pay attention to outside noise. If quiet enjoyment of your home is a priority, stick around long enough to get a sense of what you’ll hear in the neighborhood — whether it’s neighbors’ parties or landing airplanes.
• Use Google Maps to check the neighborhood view from above. (Yikes! There’s a landfill/railroad tracks/drainage ditch right there?) Google Earth has a “light meter” feature that shows sun exposure, too.
• In older homes, pay close attention to the location and number of electrical outlets, storage and other modern conveniences that are sometimes in short supply.
• Do-it-yourself projects can be a lot more of a hassle than you think. In other words, don’t think you can fix everything that’s wrong with a house.

THE HOME STRETCH

If you use a real estate agent and he isn’t listening — by showing you houses, neighborhoods or price ranges you specifically said you weren’t interested in — change agents. You’re wasting your time and his.

And when you finally narrow down your list of homes to the top contenders, break the tie by driving your morning commute from each location, visiting the neighborhoods at night and on a weekend and walking the streets. You’ll know when it’s right.

Now that the initial paperwork has been done, it’s time to find your new home. No doubt you’ve already been online and have probably seen a house or two. You may even have a good idea of what your new address will be.

But let’s take a couple of minutes and fine-tune the process a bit. There might be an idea or two here that hasn’t yet occurred to you.

READY, SET, HOUSE HUNT!

Once you obtain a preapproval letter, you’ll know exactly the price range in which you should be house hunting, and sellers will negotiate with confidence that you can do the deal. This makes a big difference, especially when you’re looking for a home in a hot market. Plus, these days, real estate agents want to spend most of their time only with preapproved buyers.

Another benefit of having that green light in hand: Since you’ve provided a lot of the initial information to qualify for a loan, you have a head start in completing the underwriting process. That can speed the process along once you have a contract for a particular home. Depending how long your house hunting has been going on, it’s likely you’ll have to update some, if not all, of the financial information that you initially provided to obtain the preapproval.

So we’ve laid out the reasons why a preapproval is so important, provided guidance for obtaining a preapproval letter and discussed the benefits of having that piece of paper in your hand. Now it’s time to do what you’ve been waiting for: hit the streets and find your new home.

TARGET YOUR POTENTIAL NEIGHBORHOODS

You probably have a neighborhood in mind, or at least an idea of what it should look like, how it will feel and its general location. In the city or away from it all; convenient to shopping or next to nothing. Once you start seriously house hunting, you might be surprised how much you learn — and where you want to be.

If you’re new to an area, you’ll need all the guidance you can get. In some cities you might be advised to live “in the Mission,” “within the Loop,” “south of the river,” or “uptown.” Everybody has an opinion. It’s a good idea to find a trusted real estate agent to guide you through your new city to help find the home that’s just right for you.

If you’re already familiar with what will be your long-term hometown, the questions can be even more specific. Single-family or condo? Ranch or Victorian? New construction, “gently used” or well-worn?

If you have children, deciding on the right school district will help narrow down your neighborhood. If not, you may be more interested in proximity to mass transit, coffee shops or food trucks.

HOUSE HUNTING TOOLS

Armed with apps, you’re the mighty house hunter of the subdivision safari. Check out these online tools:

• SummitSothebysRealty.com
• SothebysRealty.com
• SkiPropertySIR.com
• FarmAndRanchSIR.com
• Realtor.com
• UtahRealEstate.com

SLIDING INTO HOME

Few homes are perfect, but you can realistically shoot for finding a great home — one that you can truly love. Just know that there will be some compromises along the way.

The National Association of Realtors says the average homebuyer takes about 10 weeks to find what he or she is looking for. That means you’ll be doing a lot of research, walk-throughs, drive-bys and comparisons over coffee. Take your time; don’t make a rash decision and don’t get desperate. Your new home is out there waiting for you. It may just take a little time to find it.

When homebuying fever hits, it’s natural to want to rush the process — especially if you have an eye on a particular neighborhood or house. Especially when just starting out, many buyers worry about merely being approved for a home loan, never mind shopping multiple lenders. You just want that one preapproval so you can get on with finding the perfect home.

But you don’t want to rush through picking a lender. Settling for the first approval can cost you thousands of dollars in additional fees and interest. And a little lender shopping can’t hurt; after all, you’ve already got that first preapproval in your back pocket.

SHOW ME THE MONEY

The good news: There are plenty of lenders who want to get in front of potential homebuyers.

• Credit unions: These member-owned financial institutions often offer favorable interest rates to shareholders (members). And many have eased membership restrictions, so it’s likely you can find one to join.
• Mortgage bankers: They work for a specific financial institution and package loans for consideration by the bank’s underwriters.
• Correspondent lenders: Correspondent lenders are often local mortgage loan companies that have the resources to make your loan, but rely instead on a pipeline of other lenders, such as Wells Fargo and Chase, to whom they immediately sell your loan.
• Savings and loans: Once the bedrock of home lending, S&Ls are now a bit hard to find. But these smaller financial institutions are often very community-oriented and worth seeking out.
• Mutual savings banks: Another type of thrift institution, like a savings and loan, mutual savings banks are locally focused and often competitive.
• Insurance companies: Even local auto/life/home insurance agents may offer home loans, though they’re minor players in the scheme of things. State Farm is a good example.

MORTGAGE BROKERS AND INDIRECT LENDERS

Mortgage brokers are middlemen who shop your loan package to several lenders on your behalf, for a fee. They may prefer to work with particular lenders and don’t have to offer you the best deal they find, so you probably shouldn’t rely solely on one broker.

Be aware that some brokers don’t call themselves “brokers,” and some financial institutions act as brokers without telling you. That can add another layer of fees to the process. Ask your lender specifically how they’re paid, whichever type you choose.

FINDING THE BEST LENDER FOR YOU

Finding lenders near you is easy. And, of course, you’ll probably tap into online reviews. Some tips on finding the best lender for you:

• Referrals work best. Ask someone you know, or a friend of a friend who has recently bought a house, to share his or her experience — good or bad.
• Put the financial institution you currently bank with on your list. After all, they already have your business and want to deepen the relationship; that’s how they hope to keep you a loyal customer. (But don’t automatically go this route without shopping around elsewhere.)
• If you are working with a real estate agent, he or she will certainly have suggestions for lenders. After all, they’ve been to a lot of loan closings. Some real estate firms even have their own in-house lenders; just make sure that’s not the only recommendation you get.
• And don’t limit your search to just local lenders. For instance, Quicken Loans is the third-largest mortgage lender in the United States. If you want to check out an online lender, the Mortgage Bankers Association provides a searchable list of members on its consumer site.

COMPILING YOUR SHORT LIST

Naturally, you’ll be looking at interest rates — we’ll get to the nuts and bolts of choosing the best loan later — but right now you want to narrow down your list of players to the finalists. A few questions to help you choose:

1. Are your calls returned promptly?
2. Does your primary contact seem to really want your business?
3. Has the lender provided a complete list of normally incurred fees?
4. Is the lender willing to waive some fees, such as the credit report or appraisal?
5. Ask about down payment requirements. If you are seeking to put the lowest possible amount down, you’ll want to work with an FHA, VA or USDA-approved lender, depending on your circumstances.
6. Find out about typical turnaround times — for preapproval as well as for the time it will take between choosing a house and closing.

You should also ask about their experience and even consider asking them for references. A simple Google search for reviews will give you an idea of the lender’s reputation with borrowers and show whether there have been any complaints. Still not sure? You can search for a company on nmlsconsumeraccess.org to see whether they are registered in the state in which you’re buying your home. You can also search the Better Business Bureau for unbiased reviews and information.

Remember, mortgage lenders want your business; in fact, they need your business. Arming yourself with the attitude that you deserve a loan and are looking to find the best lender for you can make all the difference.