Step 1: Getting Your Financing Ready
This is the step that decides whether you're a competitive buyer or not — and it's the one most people underestimate.
Pre-qualified vs. Fully Underwritten
These are not the same thing. Pre-qualified means a lender took a quick look at self-reported info. Fully underwritten means your income, assets, and credit have actually been verified before you ever make an offer. In any market with competition, sellers can tell the difference, and an underwritten buyer looks like a sure thing while a pre-qualified buyer looks like a maybe.
Loan types to know:
- Conventional — typically requires stronger credit, down payments as low as 3-5% depending on the program
- FHA — lower down payment requirements (as low as 3.5%), more flexible credit standards, but comes with mortgage insurance
- VA — available to eligible veterans and service members, often with no down payment required
[Related: Getting fully underwritten before you shop — coming soon]
[Related: Conventional vs. FHA vs. VA — which fits your situation — coming soon]
Step 2: Working With a Buyer's Agent
Under current Washington rules, buyers are required to sign a written buyer agency agreement before touring homes with an agent. This isn't a red flag — it's simply how representation now works statewide, and it protects you by clearly defining what your agent does for you and how they're compensated.
In most transactions, buyer agent compensation is still commonly covered through the seller side of the deal, but it's a negotiated point in every transaction rather than an assumption.
A buyer's agent gives you access to full local listing data, helps you evaluate homes objectively (not just emotionally), and negotiates on your behalf throughout the process.
[Related: What a buyer agency agreement actually says — coming soon]
Step 3: Defining What You're Looking For
Before touring homes, get specific on:
- Budget — not just what you're approved for, but what payment you're actually comfortable with
- Must-haves vs. nice-to-haves — bedrooms, bathrooms, lot size, garage, school zone
- Timeline — are you flexible, or working around a lease end date or other deadline?
- Water/sewer preference — many Grays Harbor properties are on private well and septic systems rather than city utilities; this is worth deciding upfront since it affects financing and inspection needs (see Special Situations)
Step 4: Touring Homes
Once your criteria are set, your agent sets up showings for anything that fits. A few tips:
- Take notes and photos at every showing — homes blur together fast
- Pay attention to things that are expensive to change (layout, lot, location) vs. things that are easy to change (paint, fixtures, landscaping)
- Don't skip a home based on photos alone — some of the best deals are homes that photograph poorly but show beautifully in person
Step 5: Making an Offer
When you find the right home, your offer includes more than just price:
- Earnest money — a good-faith deposit, typically 1-3% of the purchase price (sometimes more in competitive situations), held by a neutral escrow or title company and credited toward your closing costs at the end. This is not an extra fee — it's a prepayment.
- Financing contingency — protects your earnest money if you're unable to secure your loan
- Inspection contingency — gives you the right to inspect the home and negotiate or exit based on findings
- Appraisal contingency — protects you if the home appraises below the purchase price (see Special Situations)
- Closing timeline — needs to work for both you and the seller
In a competitive multiple-offer situation, being fully underwritten, offering strong (but genuine) earnest money, and keeping your contingencies reasonable all strengthen your position beyond just the top-line price.
[Related: What actually makes an offer competitive beyond price — coming soon]
Step 6: Under Contract — Inspection & Appraisal
Inspection
You'll typically schedule a professional home inspection within the timeline set in your purchase agreement. Depending on findings, you can request repairs, ask for a credit, renegotiate price, or in some cases exit the contract if your inspection contingency allows it.
Appraisal
If you're financing, your lender requires an appraisal to confirm the home supports the loan amount. If it comes in at or above your offer price, no issue. If it comes in low — see Special Situations below.
Step 7: Finalizing Financing
While you're under contract, your lender finalizes your loan — verifying final documentation and clearing any remaining conditions.
Important: Avoid These During This Window
Major financial changes (new credit cards, large purchases, job changes) can affect your final approval. Keep your finances stable until closing.
Step 8: Closing
Washington closes through escrow at a title company rather than requiring an attorney. As the buyer, you can typically expect to pay:
- Lender's title insurance policy (protecting your loan, separate from the seller-paid owner's policy that protects you as the buyer)
- Loan origination fees
- Appraisal and credit report fees
- Your half of the escrow/settlement fee
- Prepaid items — setting up your property tax and homeowners insurance escrow account, which is often a larger chunk of your total cash-to-close than people expect
Total Buyer Closing Costs
In Washington, buyer closing costs typically run about 2-5% of the purchase price. Your earnest money is subtracted from this total, since it was already applied as a prepayment.
Once your loan is funded and everything is signed and recorded, you get your keys.
[Related: Buyer closing costs explained — what you'll actually pay — coming soon]
Special Situations
Low Appraisal
If the home appraises below your offer price, your lender won't lend more than that appraised value. Your options: cover the gap in cash, renegotiate the price with the seller, dispute the appraisal with additional comps, or (if your contract includes an appraisal contingency) potentially exit the deal. This is a negotiation, not automatically a dead deal.
Wells & Septic Systems
Many homes in our area use private wells and septic systems instead of city water and sewer. If you're financing, your lender will often require a well flow test and septic inspection as part of your due diligence — this is routine here, not a warning sign, but it's worth budgeting the extra time and cost into your timeline.
Contingent Offers (as the Buyer)
If you need to sell your current home before buying, you can write your offer contingent on that sale. This is a weaker position in a competitive market since sellers take on more uncertainty accepting it — worth a direct conversation about strategy, including whether a bridge loan or other option might make you more competitive.
Multiple Offer Situations
In a hot market or a well-priced home, you may be competing with several other buyers. Price matters, but so does financing strength, earnest money, contingency structure, and closing timeline flexibility — all things your agent negotiates on your behalf beyond just the number on the page.
[Related: Every one of these situations gets its own full breakdown — check the links above as they go live]
FAQ
Do I need a buyer's agent, and does it cost me anything?
You're not legally required to use one, but Washington now requires a signed buyer agency agreement before touring homes with an agent. In most transactions, buyer agent compensation is still commonly covered by the seller side, though this is negotiated deal by deal, not guaranteed.
How much do I need for a down payment?
It depends on the loan type — as low as 3-3.5% for conventional and FHA programs, and often 0% for eligible VA buyers. Your specific number depends on your loan program and lender.
What if I need to sell my current home before I can buy?
This is common and manageable with the right strategy — worth a direct conversation about your specific situation and timeline.
Do I need a real estate attorney to buy a home here?
Not required for a standard Washington purchase, since escrow/title handles the closing documents — but one can be brought in for anything unusual in the transaction.
Start the conversation
Tell Chris what you want to buy and when. He will follow up by email. Calls and texts happen only if you check the consent box.
Ready to Talk Specifics?
Every buyer's situation is different — this guide covers how the process generally works, but the details of your purchase deserve a direct conversation.
Chris Pierog
Spivey Realty Group