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The Home Buying Process: Step by Step

Purchasing a home in beautiful Lexington, KY is a great investment. Whether you are seeking a home for yourself or for your family, Lexington is a wonderful place to purchase a quality property. The home buying experience in Lexington can be a stress free experience if you take the necessary steps to purchase a property. Here are some suggestions we recommend following:

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Checking Your Credit Score

Your credit score will be vital to the home buying process. Without a credit score in the mid 600’s and higher, it would be quite difficult to secure a loan. Check your credit score to see where you stand. If you find that your score is too low to qualify for a loan, seek ways to build your score. A financial adviser would be helpful in this situation.

Get A Full Understanding of Your Budget

Knowing the type of property you can afford will depend on two things: your earnings and your expenses. Your mortgage should take up anywhere from 25-30 percent of your monthly gross salary. If you find a home that will cost you 40 percent and above of your monthly income, then chances are that home is not a property that you will be able to afford. Many people have to foreclose on homes because they decided to purchase a property that was well above their financial means. Be sure this does not happen to you.

Seek a Good Realtor and Lender

A good realtor will take a lot of the load off of you in the home buying process. They will walk you through step by step in regards to things you will need to do to ensure you get the property you desire. Once you give them the list of desires you have for a home, a good realtor will work diligently to get desired property types to you as soon as they hit the market.

A lender is important because they will work with you to ensure that whatever property you decide on, you will have the right loan for your financial situation. To talk with one of our preferred mortgage lenders, click here.

Seeking the Right Property

When buying a home, this is the one time in life that you must be extra picky. Remember, this is not a purchase where you can change your mind the next week and return it to the store. This is an investment that can change your financial future for better or worse. Be sure that you take time to carefully consider all you want and do not want in a home. See multiples homes before making your final selection.

Click Here to Explore Lexington Real Estate

Understand the Bidding Process

When you finally decide on a home you want to purchase, be sure to place an opening bid around 5 percent less than the listing price. This is so there is room to negotiate the price of the home. When there is stiff competition you may have to raise your bid slightly above the asking price. But be sure not to overpay for a property no matter how much you like it.

Getting a Mortgage

There are various mortgages one can consider. There are conventional loans where 20 percent down is encouraged. If you are unable to pay 20 percent then you must pay mortgage insurance as part of your monthly mortgage payments. There are also VA loans for veterans that will allow for a purchase of a property without a down payment or need to pay mortgage insurance. And finally, there are first time buyer loans that are designed to help first time buyers successfully own a home. Be sure to research all loans you are eligible for to see which one best suits your financial situation.


Before closing on your home you will first need to hire an inspector in order to make sure that there is nothing wrong with the property that will cost you a great deal of money to repair. Also, your lending company will send an appraiser to the property to ensure that the home is worth the mortgage being sought. Closing fees are also something you must prepare for — although the seller may sometimes agree to take responsibility for the closing cost depending on the situation. Be sure to discuss this with your realtor.

These are some steps to consider when purchasing a home in beautiful Lexington, KY. Following these steps can be a way to make your process as stress free as possible.

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Nick Ratliff

Former electrical engineer & MBA Graduate turned Realtor in 2004

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