First, you should obtain a prequalification letter from a lender of your choice to determine how much you can afford. A prequalification letter is usually free and it does not obligate you to borrow from the lender. In Dutchess County you will need a prequalification letter when you submit an offer to purchase property.

Next, begin defining the criteria of your home by creating a prioritized list of features that are important to you. You can always refine your list as you search for homes.

Print and web advertisements are often outdated; therefore, the most efficient way to search for homes is through a direct connection to the local Multiple Listing Service (MLS). Have your real estate agent set up a personalized webpage based on your criteria that is updated directly from the Mid-Hudson MLS (local MLS for Dutchess County). The website will contain property addresses and tax information, and you will receive notification via email when new properties meeting your criteria come on the market. When you find a home that you would like to preview, simply contact your agent to schedule an appointment.

Before making an offer to purchase, you should know the selling prices of nearby properties similar to the one you are interested in buying. Have your real estate agent provide you with comparable sales that have occurred within the last three to six months. By comparing these properties you will be able to establish an initial offer.

Once you have determined your initial offer, a Purchase Offer Agreement along with your prequalification letter will be submitted by your agent to the seller’s representative. A Purchase Offer Agreement is a preliminary agreement that states the offer price and the essential terms of the sale that will be superseded at a later date by a formal sales contract that is drawn up by the seller’s attorney.

The sales contract will typically include a financing contingency, an inspection contingency, and a provision that the seller provide clear title. The remaining steps of the buying process are based on satisfying these three contingencies in addition to any other contingencies that were included in the contract.

After the purchase offer has been accepted, you should immediately schedule a home inspection. A typical home inspection cost between $400 and $700. If the home inspection is satisfactory, the seller will have their attorney draft the detailed sales contract and send it to your attorney. Once you have reviewed and signed the sales contract your attorney will send it back to the seller’s attorney and have the seller sign. Once these steps are completed you will be “in contract”. Attorney fees for a standard real estate transaction will range from $750 - $1000.

Shortly after the home inspection you should begin the mortgage application process. The lender will request an appraisal, credit report, and review your financial information. Lenders typically charge an upfront fee of $500 to cover the cost of these services. Once your mortgage application is approved, you will receive a commitment letter from the lender which is needed for closing.

Lenders are required by Federal Law to disclose closing costs, fees, and rates within three days of receiving your loan application.

In New York State a buyer of a 1-4 family detached home is entitled to receive a Property Condition Disclosure Statement from the seller. If the buyer does not receive the disclosure prior to signing the formal sales contract, they will receive a $500 credit at closing.

If the house you are purchasing was built before 1978, the seller must inform you of any known lead-based paint or lead-based paint hazards.

Lenders require that homeowners’ insurance be purchased before the closing.   Homeowner’s insurance policies vary in coverage and cost so make sure to shop around.

Although it’s not required, a home warranty plan may be purchased to cover your home’s major systems and appliances.  The items covered in the policy vary by company as do the cost.

The closing is the final step in the buying process. Upon satisfaction of all contract contingencies, your attorney will schedule the closing date based on the availability of all parties. Typically the closing is attended by the buyer, the seller, their attorneys, their real estate agents, a title company representative, and a lender representative.

Your attorney will inform you of the time and place of the closing and items that you will need to bring. On the day of the closing you should conduct your final walk-through of the property to ensure the property was left in accordance with the sales contract.

At the closing, mortgage documents are signed, title is transferred, and funds are disbursed according to the HUD-1 settlement sheet. Upon completion you will receive the keys to your new home.