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  • About
    • All About Theory
    • Meet the Team
    • Theory Companies
    • Theory Cares
    • Fill The Barrel
    • Blog
  • Buy
    • Buy With Theory
    • 2023 Homebuyer Guide
    • Home Buyer Bus Tour
    • Your Guide to the PNW
    • Featured Listings
    • Home Search
    • Sign In
  • Sell
    • Sell With Theory
    • Free Home Estimate
    • 1 Hour Cash Offer
    • Sold By Theory
  • Invest
    • Theory Investments
    • Theory Self-Directed IRA
  • Construction
  • Property Management
  • Careers
  • Contact

5 Questions You Should Ask Before Buying Your Home

We know there’s nothing more frustrating to home-buyers than having unanswered questions. Here at Theory, we want to prepare and inform our buyers! Buying a home is one of the largest investments a person can make. Before you can go through with purchasing a home, it requires lots of thought, research, and documentation. So, here are 5 questions you should ask before buying your home.

Should I Talk With A Lender Before Looking At Homes?

5 Questions You Should Ask Before Buying Your Home

Yes, you should! Talking with a lender before looking at homes will help you understand exactly how much you can afford. There’s no reason to start looking at $400,000 homes if your income only allows for a payment you’d have at the $200,000 price point.

Also, if you’re not quite up to the minimum credit level required, your lender can help put you on a GREAT credit repair plan. Whether you can buy this month or in 6 months, it’s a good idea to talk to a lender and get the ball rolling as soon as possible. The pre-approval process itself is actually pretty quick. We have great lenders we’d be happy to recommend if you’d like to see if you can get pre-approved.

How Much Money Should I Save Before I Start Looking Buy A Home?

Out of our 5 questions you should ask before buying a home, this is perhaps the most common one we hear! The answer depends on a number of factors, including the cost of the house and the type of mortgage you end up getting. Talking to a lender first and foremost will help answer these questions so you know exactly how much to save for. In general, you need to come up with enough money to cover three costs:  


Earnest Money

This is the deposit you make when you reach mutual acceptance on a home. It is essentially an act of good faith that proves to the seller that you are serious about wanting to buy the home. Earnest money is generally $1,000, but some buyers like to put down more earnest money. The more money you put for earnest money, the more attractive your offer looks to the seller. At closing, your earnest money applies to your down payment or closing costs.

Down Payment

This is a percentage of the purchase price that you must pay when you close on the home. The more money you can put down for your down payment, the lower your mortgage payment will be. Some types of loans require 10-20% of the purchase price. However, most first time homebuyers will go the FHA route, as FHA only requires 3.5% down. There are also some down payment assistance programs for FHA buyers that allow as little as $1,000 down.

Closing Costs

These are simply the costs associated with buying a home. These include title and escrow fees, lender fees, pre-paids, etc. For a buyer, closing costs usually run 2.5-3% of the purchase price. If you don’t have enough money saved up to cover your earnest money, down payment, AND closing costs, you can ask the seller to pay for your closing costs. If you’re able to save up and pay your own closing costs, it’ll definitely help make your offer more attractive! Your lender can give you a closing cost estimate (early on in the process) so you’re not caught off guard when you sign your closing paperwork.

Should I Get A Home Inspection?

5 Questions You Should Ask Before Buying Your Home

While buyers often wonder if a home inspection is truly necessary, most agents will say yes, yes, and yes! It’s very important. A home inspector takes a weight off of your shoulders by looking into the ALL components of the home: the condition of the roof, foundation, electrical, heating source, plumbing, crawl space, and attic. The inspection will run you anywhere from $350-$500, but that’s a LOT less than any major repairs would be! Ensuring that all of these home components are in good condition prevents you from paying to fix them in the near future. If there are aspects of the house that are not as sound as you thought (prior to inspection), you can negotiate with the seller to get those items fixed before you close on your new home.

How Long Does It Take To Buy A Home?

The timeline for finding a house varies greatly from person to person. Meet with your Agent early on in the process and create your “needs list”. Your Agent can then help you establish a realistic timeline to find your home. Once you find a house and have an accepted offer, it usually takes around 25-45 days to close!

Who Pays For My Real Estate Agent?

If you’re buying a home, you are off the hook. The seller ALWAYS pays for both sides of the commission, which is paid at closing.

So there you have it! These were 5 questions you should ask before buying your home. If you still have any questions that need answered, feel free to contact us anytime!

“

“I think that’s the easiest it’s ever been for me to buy or sell a home!”

Brad Rasmussen -

“

We had a distressed property in Tacoma that required a lot of repair before we could sell. The task soon became overwhelming and that’s when we contacted Theory Real Estate.  They purchased the property “as is”. Within 3 weeks,  we closed on the deal. The Theory team is amazing!!  Every person we came in contact with was friendly, professional and efficient.

John and Diane Simchuk -

“

We are new investors to this market. We met Isaac and Alan through a good friend, and we are so thankful to have met them. They are the nicest, caring, most professional, kind-hearted people we have met in a long time. We would recommend these guys to ANYONE.

Anthony & Sarah Wooden - Tacoma

“

We have bought 2 homes and sold 1 home with Theory. We would recommend them to all our friends.

Rhonda & Rickey Wilks - Buckley

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We worked with Theory to find our perfect house, but ran into a couple obstacles with the seller. The Theory team was always there with answers and went above and beyond all of our expectations.

Ceirra & Kenny Williams - Spanaway

LET'S GET SOCIAL

THIS Saturday!! The path to becoming a homeowner s THIS Saturday!! The path to becoming a homeowner starts with getting WSHFC Certified for Down Payment Assistance & learning EVERYTHING you need to know about how to turn your dreams into a reality 💡Our very own Nickie Robbs along with Katie Arnold from Evergreen Home Loans will be your experts for the day as they answer questions, clarify myths, & provide the roadmap you need 😎Snacks will be provided, and the class will be held IN PERSON from 10AM - 4PM! Successful completion earns you official WSHFC Certification for Down Payment Assistance Programs in WA State 🏡 💰If you'd like to attend, please email karnold@evergreenhomeloans.com!📍 217 N Meridian, Puyallup (next to Meridian Cafe and Trackside Pizza, parking is in the back)
🗓 Saturday, May 27th
⏰ 10AM - 4PM
Happy Birthday to Jessica Helms, our Assistant Pro Happy Birthday to Jessica Helms, our Assistant Property Manager with Love My Space! She's been with us for the last 6 months and has been a truly wonderful person to have around. She gets stuff done and has become an invaluable member of the team! Happy Birthday Jessica, we hope you have an amazing day 🥳 🧁
Started the week off right yesterday with a class Started the week off right yesterday with a class from our CFO Erik about personal finance! He talked all about how to set up yourself and your family for a less financially stressful life, from now through retirement. We're always looking for ways like this to help bring extra value to our Team on a regular basis 😎The biggest takeaway from the class? Every great budget starts with a specific, well thought out system. And if you're curious to learn more about how to make THAT happen, you might just have to join our team and come to the next one 😉
Today we're celebrating the birthday of the one-an Today we're celebrating the birthday of the one-and-only Madison "Two Hands" Magruder! Mads has been around since just about the beginning, and was an integral part of the company throughout its early years. We're blessed to have her hang her RE license with us still, and we wish her the best possible day 🙌🥳💃
Happy Birthday, Rizwan! 🎂 We hope you have the Happy Birthday, Rizwan! 🎂 We hope you have the most special day!!
If I were you, I wouldn't pass on this charming Cr If I were you, I wouldn't pass on this charming Craftsman home in Aberdeen with an unmatchable value that you won’t find at this price!!📍 2215 Cherry St
💰 $345,000
👣 1,743
🛏 4
🛁 1.75This beauty features a HEATED 720SQFT SHOP WITH LOFT along with an attached 2-car garage & NEW ELECTRIC PANEL! On the main floor you will find the large Primary BR w/ slider to the back deck – as well as an additional BR, Bath and den/office space. 2 Beds & 1 Bath upstairs. Truly one of a kind, displaying handcrafted woodwork throughout: revitalized fir floors, redwood & old-age cedar counter tops, knotty pine ceilings, exposed post and beam, and custom fencing surrounding the property for added privacy. Driveway/street parking in front, alley access with SECURE GATED ENTRY, RV parking; enough for 6+ vehicles in back! Immaculate landscaping with back deck/patio.
RUN! Dont Walk to take a look at this stunner in p RUN! Dont Walk to take a look at this stunner in person!📍 5024 84th Avenue W
💰 $690,000
👣 2,206 sqft
🛏 4
🛁 3Welcome to this stunning mid-century modern home ideally situated on a serene dead-end street in desirable University Place! With 4 beds, 2.5 baths, multiple living spaces each with a fireplace, fenced back yard, front courtyard, and a 2-car garage, it's really easy to just come home and relax! The open kitchen seamlessly blends with the dining space, creating an inviting atmosphere & the primary bedroom is large & offers an en suite! Don't forget about the AC keeping you cool this summer! The location of this home in UP is highly desirable, offering a peaceful neighborhood ambience while being just moments away from urban conveniences. Nearby, you'll find great schools, trendy shops, delicious restaurants, and picturesque parks!
Incredibly inspiring night with Mike Smith! What w Incredibly inspiring night with Mike Smith! What was your favorite takeaway from this month's Tacoma Connect? 👇

Office

5413 South Tacoma Way
Tacoma, WA 98409

Phone

253-537-HOME

Email

hello@theoryRE.com

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