Tips for Buyers

Here is Robert's to-do list for those who want to purchase a home.

  • Get a copy of your credit report six to nine months before buying. Clean up any blemishes or problems. The Federal Trade Commission provides information on your rights as a consumer. You can also receive a free copy of your credit report.
  • Save, save, and save your money. Open a direct deposit account or have money automatically debited from your paycheck and deposited into a savings account. Try to do this at least 12 months before buying. You will be surprised at how much you can save.
  • Reduce your living costs by eliminating unnecessary expenses such as magazine subscriptions, extra phone lines, weekend trips, shopping, etc. Do this at least six to nine months before buying.
  • Find an agent like Robert Kaczanowski. Talk to many agents until you find one who is professional and treats you with courtesy and respect. Your agent should help educate you on the home buying process. Remember, your agent is working for YOU.
  • Get prequalified for a mortgage loan at least one day before shopping for a home. Robert works with many lenders and can help you get prequalified. Remember, most mortgage companies will allow between 25 percent and 36 percent of your GROSS (pre-tax) income to be used toward a mortgage payment. You can use the loan application forms found on this Web site.
  • Find a house with your agent. Your agent should be able to find a house in your price range and desired neighborhood. The house-hunting process should take between one and 60 days.
  • Get your funds ready at least 30 days before purchasing. Don't do anything to flag your credit report, such as purchasing items on credit, opening new credit cards, or buying large items. Don't do anything that will affect your credit score, such as getting a cell phone or opening new accounts.
  • When you find a house, get prepared to make an offer. Your agent should analyze sales trends and run comparables for the neighborhood. You and your agent should establish a strategy for price, negotiations, and timeframe for your offer. You may also need to write a check to the agent's broker to show the seller that you mean business (ask your agent about this).
  • The seller has three options when you make an offer to purchase: accept, reject, or counter your offer.
    • If accepted: Great! Prepare to take the next step toward home ownership.
    • If rejected: You can write a new offer, or move on to another property.
    • If countered: You can accept, reject, or counter the "counter offer."
  • After your offer is accepted, you will need to follow the terms of the contract. You and your agent will work together to get you into the house. Ask your agent many questions about the contract, home inspection, insurance, closing costs, escrow, etc. Your agent should guide you through this most stressful time—this is when your agent should be most helpful! The actual purchase process usually takes between 14 and 45 days.

    You will also need to obtain insurance on your home. Robert has used Allstate, State Farm, and Zurich for his personal residences. Maryland insurers include Homeowner Select (1-800-398-0096) and Amica (1-800-68-AMICA).
  • After purchasing your home, you should consult with your accountant for tax purposes. Many accountants and financial planners will recommend a change to your income tax withholding.
  • Many accountants and lawyers recommend that you draw up a will to protect your family and your new investment.
  • Remember to enjoy your new house!

This checklist (PDF) will help you stay on track throughout your home-buying experience.