You’re thinking of buying a home? Congratulations -- it’s an exciting process. And it can be a lot of fun. You get to envision the type of lifestyle you want for yourself (and your family). Do you want a beautiful two-story home close to your work? Do you want a modern, stylish condo in the heart of downtown? Are you yearning to live near the beach, the mountains, restaurants, good schools, museums, or family? One of the greatest things about purchasing your own home is that you get to make it yours. Even before you move in, you’re in charge of making the decisions about which home you will buy. It’s a powerful feeling -- having total control. But it can also be a bit overwhelming, especially when you’re doing it for the first time. That’s why we wrote this guide. We want to make purchasing a home less scary and give you the confidence to move forward through each step of the process -- from beginning to end, when you move into your new home!

1. Buying a Home?
Here’s how to get started
Volume 1

2. 01 How to Know if You’re Ready 4
to Buy a Home
02 How Much Home Can You Afford? 9
03 What Credit Score Do You Need 12
to Buy a Home?
04 How to Get Pre-Approved to 16
Buy a Home
05 How to Choose a Real Estate Agent 20
Table of Contents

3. You’re thinking of buying a home? Congratulations -- it’s an exciting
process. And it can be a lot of fun. You get to envision the type
of lifestyle you want for yourself (and your family). Do you want
a beautiful two-story home close to your work? Do you want a
modern, stylish condo in the heart of downtown? Are you yearning
to live near the beach, the mountains, restaurants, good schools,
museums, or family?
One of the greatest things about purchasing your own home is
that you get to make it yours. Even before you move in, you’re in
charge of making the decisions about which home you will buy.
It’s a powerful feeling -- having total control. But it can also be a bit
overwhelming, especially when you’re doing it for the first time.
That’s why we wrote this guide. We want to make purchasing a home
less scary and give you the confidence to move forward through
each step of the process -- from beginning to end, when you move
into your new home!
In Chapter 1, we’ll begin by helping you determine if you’re ready
to buy a home right now or if you need to wait a little while to begin
your home search. In the following chapters, we’ll discuss the
most important things you need to know as you take the first steps
in your home-buying journey.
Introduction

4. 4
When you start any journey, whether it’s a weekend getaway or an around-the-
world trip, you want to be prepared before you begin -- and buying a home is no
different. It could take anywhere from one month to one year to get the home you
want. And there will no doubt be a few challenges to overcome along the way.
Before you dive head first into the home-buying process, you want to make sure
that you’re ready to buy a home. So in this chapter we’ll explore how you can
ensure that you are starting your journey on the right foot.
In many areas of the
country, owning is
cheaper than renting.
How to Know if You’re
Ready to Buy a Home
01

5. CHAPTER 01 | How to Know If You’re Ready to Buy a Home 5
Begin With the End in Mind
It’s important to start with an idea of the type of home you are looking for. Here
are a few questions you should try to answer as you begin your journey:
You’ve probably already arrived at answers to many of these questions. If so, then
you’ll want to start getting answers regarding your financial picture.
Get an Overview of Your Financial Situation
Obviously, a big part of the picture is your expected monthly mortgage payment
– which consists of your principal and interest payment plus taxes, property
insurance and, in some cases, mortgage insurance. You can get a quick read on
whether you can afford the monthly mortgage payment from an online
calculator like this one.
Qualifying for a monthly mortgage payment based on income is a great first step,
but it’s just one small piece of the overall homeownership puzzle. Here are other
things for you to consider:
Income stability: A mortgage is a longer term commitment than a lease
agreement and carries greater financial implications. For example, if a job loss
prevents you from making the payments, you could lose your home and any
equity in it. Therefore, if your income isn’t stable or you are already concerned
about your job stability, locking yourself into a mortgage might not be the best
option.
Credit health: Have you checked into your credit lately? The items on your credit
report and your resulting score could have a big impact on both loan approval
and loan terms. While this is something lenders will look at on your behalf,
taking a look for yourself beforehand will allow you to correct any misreported
information and take steps to improve your score now. If your credit health is less
As a general rule,
experts recommend
keeping your housing
payments to about
30% of your gross
(pre-tax) income.
How big of a home
do you want?
What neighborhood do
you want to live in?
Do you have a particular
style of home in mind?
START 1
2
3
Is it important to live in a
certain school district?
4
How far from work do
you want to live?
5

6. CHAPTER 01 | How to Know If You’re Ready to Buy a Home 6
than ideal, you may need to wait until financial changes you make can be reflected
in your score. (You are entitled to one free credit report annually from each of
the three credit reporting bureaus — Equifax, TransUnion, and Experian — at
AnnualCreditReport.com.)
Savings: While some loans make it possible to purchase a home with less than
20% down, your monthly payment will be higher and you’ll likely have to pay
mortgage insurance. On the other hand, you might not want to lock up all your
savings in the house just to get to a 20% down payment. Instead, you should
consider programs like the Unison HomeBuyer program offered by Unison, which
allows you to reap the benefits of a large down payment without putting all your
cash into the home. The company invests alongside you in your home so that you
can put down 20%.
Emergency fund: The need for a stable emergency fund (3-12 months’ worth of
expenses, depending on your situation), becomes even more of a necessity when
you have the responsibility of a mortgage. In addition, you’ll have to remember
that repairs that used to be paid for by a landlord will now fall squarely on your
shoulders. So having an emergency fund is a necessity.
Get pre-approved for a loan: It doesn’t cost anything to talk to a loan officer and
it is the surest way to find out what kind of home prices you can consider. When
you talk to a loan officer, they will ask you about your income, current debts,
cash available for a down payment and credit history. From this information, they
will be able to tell you the amount of a loan and hence the home price you can
consider. If you forward documents such as copies of tax returns to verify your
income, the loan officer will be able to give you a pre-approval. A pre-approval
is a formal estimate of how much money you can borrow to buy a home.
The plan you create
should be based on fact,
not assumptions – and
not wishful thinking.

7. CHAPTER 01 | How to Know If You’re Ready to Buy a Home 7
Think About Your Long-Term Plan
Your decision-making process should include taking a careful look at how long you
plan to be in the home you purchase. The plan you create should be based on fact,
not assumptions – and not wishful thinking.
A down payment is the biggest upfront cost. Assembling that amount of cash can
be a challenge. But the money you put down you essentially recoup in the form of
home equity. It is stored in the value of your home. As long as your home retains
its value or appreciates, the cash you invest as your down payment will eventually
come back to you when you sell (less selling expenses). In the meantime, it’s
locked away in your home. There are other costs — like real estate agent fees and
closing costs — that you won’t be able to get back. That’s one reason why many
suggest being prepared to stay in a home for 5-7 years, which should be long
enough to build equity in the home to offset these costs.
The “right” amount of time, however, depends on your situation.
Evaluate Your Rent Costs vs. Mortgage Costs
It’s also helpful to look at the hard numbers associated with renting vs. buying.
Renter’s monthly costs:
Rent
Water/sewage
Utilities
Television/Internet
Homeowner’s monthly costs:
Mortgage Insurance*
Homeowner’s
Association dues
Home repairs and
maintenance
There may be some additional costs
as well, including:
Mortgage
Water/sewage
Utilities
Television/Internet
Property tax
Homeowner’s insurance
Mortgage insurance expenses (in the form of PMI or MIP) typically kick in when
you have less than 20% for a down payment. Programs like Unison HomeBuyer
can eliminate the need for paying mortgage insurance altogether.
PMI-Private mortgage
insurance
MIP-Mortgage insurance
premium (exclusive to
FHA loans)
*

8. CHAPTER 01 | How to Know If You’re Ready to Buy a Home 8
To understand the full cost implications between renting and buying, evaluate:
• Rental prices in your area (based on the size of home or apartment)
• Home prices in your area (based on the size of home)
• Current interest rates on a mortgage
• Property taxes in your area (Here’s a resource to help.)
• The average cost of homeowner’s insurance for your area
This comprehensive rent vs. buy calculator can shed some light on what these
numbers might mean for you.
After reviewing your finances and deciding what type of home you’re looking for,
you can make your decision with confidence and know exactly what type of home
to look for and end up with a new home that you love.

9. 9
It’s the most important question when thinking about buying a home: how much
home can I afford? Fortunately, the answer is easy is not too difficult to find.
Below, we’ll walk you through how to get your answer.
How Much Income Do You Have?
If you’re like the majority of home buyers, you will need a mortgage to purchase a
home. Your income is one of the most important factors in determining how large
of a mortgage you can be approved for. As a general rule, experts recommend
keeping your housing payments to about 30% of your “gross” (pre-tax) income. As
an example, if your salary is $60,000 per year, then your monthly gross income
would be $5,000, meaning you should aim to spend $1,500 or less on your housing
in a given month.
How Much Home
Can You Afford?
02
Salary
$60,000
Monthly income
$5,000
Recommended maximum
housing expense
30% of
$5,00012 months 1 month
= =
Monthly housing
payment
$1,500

10. 10CHAPTER 02 | How much can I afford?
Monthly Debt
= DTI
Monthly Income
$2,000
$5,000
Monthly Debt
== 40% DTI
Monthly Income$2,000
Monthly Debt
$1,500
$300
$200
Mortgage
Car payment
Credit card
+
But that’s not the only factor to consider.
What is Your DTI?
A lender will also look at your Debt-To-Income ratio (or DTI). This is a calculation
that tells the lender how much of your income goes to debt payments each month.
Here’s how you can calculate your own DTI: Add up all your monthly debt
payments (mortgage, student loan, auto loan, credit card, etc.) and divide the total
by your income.
Going back to our example above, if you have a monthly income of $5,000 and
a mortgage payment of $1,500, plus a $300 car payment and a $200 credit
card payment, then your total debt payments would be $2,000. Since $2,000 divided
by $5,000 is 40%, your DTI ratio in that example would be 40%.
Lenders generally prefer a DTI of 43% or lower when evaluating your
mortgage application.
How Much of a Down Payment Do You Have?
The second most important factor – after your income – in determining how much
home you can afford is your down payment. In other words, how much money
do you have saved up to put into the home? If you have saved up $40,000 and are
ready to invest it in your new home, then you have a $40,000 down payment.
In general, it’s best to have at least a 20% down payment, although you can buy
a home with less. The size of your down payment, along with your income and DTI
ratio, will determine how big of a loan you qualify for.
If you don’t have enough of a down payment to qualify for the loan you need,
you should consider using a home ownership investment from a company like
Unison. With the Unison HomeBuyer program, the company matches your down
payment funding, contributing up to half of the down payment. That means if
you have $40,000 then you can get an additional $40,000 for a total down payment
of $80,000. There are no monthly payments or interest on the money Unison

11. 11CHAPTER 02 | How much can I afford?
It’s always a good idea
to use a mortgage
calculator to better
understand how much
you can afford to
pay for a home.
provides. Instead, Unison receives a portion of any future change in the value of
your home when you sell. The additional down payment funds can come in handy
if you want to afford more home, reduce your monthly payments, or keep some
of your money for other purposes.
Calculate How Much Home You Can Afford
It’s always a good idea to use a mortgage calculator to better understand how
much you can afford to pay for a home. Here are a few calculators we recommend:
Mortgage Calculator Monthly Payment Calculator
Interest Rate Tool
These calculators will help you see how much your total monthly payment will
be, including principal and interest payments, property taxes, and mortgage
insurance (if applicable).
Other Costs
You should also keep in mind that there will be other costs in addition to
your mortgage:
Closing costs: You will usually need to pay between 2-5% of the price of the home
in closing costs.
Repairs and remodeling: Many home buyers choose to do some remodeling on
their new home to make it fit their needs and tastes. In addition, the home
may need various repairs in the first year and beyond you may want to purchase
a home warranty as well..
You will definitely want to account for these costs when deciding how much you
can afford to spend on a new home.
Anticipating all of these costs will help you avoid coming up short or feeling that
your finances are too squeezed after purchasing the home.

12. 12
Every lender will evaluate your credit score before deciding whether to approve
you for a loan and determining the interest rate they will offer you. Here’s what
they want to see and what kind of score will likely get you the mortgage you want
-- along with tips for improving your score if it’s too low right now.
Know Your Credit Score Before You Buy
Do you know your credit score right now? You don’t want to do all the legwork
required to find the home you want only to realize the lender won’t qualify you.
Check your credit before you head to the lender. Here is a short checklist to help
you accomplish this:
• Get an estimate of your score with a service like Credit Karma, Credit Sesame,
or Credit.com. All of these sites pull scores from one or more of the three major
credit bureaus (Experian, TransUnion, and Equifax).
What Credit Score Do You
Need to Buy a Home?
03

13. 13CHAPTER 03 | What Credit Score Do You Need to Buy a Home?
850 is considered
a perfect credit score
-- but thankfully, you
don’t need to be
perfect to buy a home.
600500 700 800
800+ (Excellent)
740-799 (Very Good)
670-739 (Good)
580-669 (Fair)
579 or lower (Poor)
Gauge your credit score
• You also want to check your credit report to fully understand what a lender will
see. Yes, your credit report is different from your credit score! You can get a
free copy of your credit report from each of the three bureaus once per year
at AnnualCreditReport.com.
While the credit score is a single number, the credit report acts as a summary of
your credit history and the factors present on your report help determine your
score. You’ll see all your lines of credit and open accounts on your report. You can
also see judgments, liens, collections and bankruptcies filed against you over the
last seven years.
Make sure all the information presented is accurate. Mistakes on your report can
drag down your credit score. If you find an error, contact the three credit bureaus
and file a dispute.
What Do Lenders Look for In Your Credit Score?
Credit scores exist on a scale from 300 on the low end to 850 on the high side. 850
is considered a perfect credit score -- but thankfully, you don’t need to be perfect
to buy a home.
On the high end, any score of 740 or higher will allow you to not only qualify for
a mortgage but also the best interest rates offered by lenders. The exact rate you
get will depend on a variety of other factors in your financial situation, like how
much cash you put down on the home and your debt-to-income ratio. For a jumbo
mortgage loan, you will typically need a score of 720 or higher. Jumbo loans are
those above a certain amount ($400,000–$650,000) depending on the area.
If your score falls into the 620 to 740 range, you’ll probably still qualify for a
mortgage loan.
The lower your score, the more difficult it will be to qualify for a conventional loan
from a lender. If your score falls below 620, it’s possible that you may not qualify for
a loan at all.
You could, however, get an FHA loan. The minimum credit score required for this
government-backed loan is 580. And if you fall below this range? It may be time to
take a step back and look at what you can do to improve your credit before you buy.

14. 14CHAPTER 03 | What Credit Score Do You Need to Buy a Home?
A better credit score
makes you seem more
financially responsible
-- and therefore less
risky to the lender,
since they see you as
less likely to stop
paying your loan.
Why Your Credit Score Matters So Much
Let’s say your credit score is in the mid-600s. That’s probably good enough to get
an FHA loan -- and with the minimum required score for conventional loans set
at 620, you have a good chance of being approved for a regular mortgage as well.
So why worry about your score if you meet this minimum?
While you may be able to get a loan, it might not be the one you want. Lenders
can still deny you for a conventional loan depending on other factors like your
income and debt ratio. More importantly, the loan could come with a much higher
interest rate.
With a lower credit score, you might only qualify for an interest rate that is 1or 2
percentage points higher than the lowest rates advertised.
A better credit score tells the lender you are more financially responsible -- and
therefore less risky to the lender, since they see you as less likely to stop paying
your loan.
And lenders reward that financial responsibility and lower risk by offering lower
interest rates to borrowers with better credit scores.
When you talk about a loan as big as a mortgage, even 1 or 2 percentage points
on your interest rate makes a significant difference. The average person borrows
$222,261 when they buy a home. Let’s use that as our example and say you
borrow that much on a 30-year mortgage.
If you can secure an interest rate of 4%, over the life of the loan, you’ll pay
$159,737 in interest (that’s on top of the amount you borrowed that you need
to repay). But if your credit score is on the lower end, you might have to pay 5%
instead of 4%. That’s just one percentage point difference. But with a 5% interest
rate, you’d pay $207,271 in interest over 30 years.

15. 15CHAPTER 03 | What Credit Score Do You Need to Buy a Home?
Total Interest
Paid Over 30
Year Term
100K
200K
400K
300K * Remember, your credit
score directly affects
your interest rate -
see how small
increments in your
interest rate will
dramatically cost you
in the long run
Interest Rate
$207,109
4.54.03.53.0 5.0
$246,624
$287,478
$329,626
$373,023
That means you’d pay $47,000 more! That’s why your credit score matters so
much, and why it’s worth doing what you can to raise it before buying a home
(even if you could technically qualify for a mortgage with a lower score).
To better see how interest rates affect the cost of the loan, take a look at the
chart below.
How to Improve Your Credit Score Before Buying a Home
The better your score, the more options you’ll have when choosing a mortgage. And
of course, you’ll be in a better position to get that lower interest rate you’re after.
Whatever your reason, know that you have the power to improve your score.
You can take specific actions over time to get your credit score into a range that
provides more benefits and flexibility when it comes to buying a home.
The fastest credit score fix will likely come from lowering your credit utilization
ratio. Credit utilization refers to the amount of credit you use out of what’s
available to you. If you have two credit cards with limits of $2,000 and $4,000,
for example, your total credit limit is $6,000. And if you carry a balance of $3,000
across both cards, then your credit utilization ratio is 50%.
So how do you lower that percentage? By paying down existing debts, like credit
card balances. Aim to keep your credit utilization on revolving credit
to 30% or lower.
You can also improve your score by making all your payments on bills, balances,
and other debts on time and in full. Payment history makes up a big chunk of how
your score gets calculated. Getting payments in before they’re due is so simple,
but it has a big impact. (See this article for more tips).

16. 16
Most people searching for a home will tell you the most exciting part of the
process is getting to look at all the homes you might buy. It’s fun to explore the
options, see the different features available, and narrow down your choices to
a few properties you really like.
But if you’re shopping around without having been pre-approved for a loan, you
could be making a major mistake.
While it may not be as fun as wandering from one open house to another, the
process of working with lenders, dealing with paperwork, and digging deep into
the realities of what you can actually afford is a critical step. You should take
the time to get pre-approved before you start your home search. Keep reading
to learn how.
Why Get Pre-Approved?
A pre-approval letter is a document that verifies the lender’s determination that
you will qualify for a specific amount of a mortgage loan to buy a home, based
on the information you provide them.
Getting pre-approved
before shopping for a
home is a smart idea.
How to Get Pre-Approved
to Buy a Home
04

17. 17CHAPTER 04 | How to Get Pre-Approved to Buy a Home
Pre-approved
• Formal process.
• Requires application and credit check.
• Submit the information you needed
to be pre-qualified - AND
• Submit documents supporting your
financial information such as pay stubs,
tax filings, credit account and bank
statements.
Pre-qualified
• Quick process. You submit information
about your debts, income and down
payment cash. Loan Officer takes you
at your word.
• The Pre-qualification commitment
doesn’t mean much.
vs
Getting pre-approved can help your home search in the following ways:
• It means you already located a lender to work with and you know what to expect
when it comes to getting your mortgage.
• You’re clear on how much you can borrow -- and that helps define the properties
you can include in your search.
Without this step, you could go through the work of looking for a home and
even putting in an offer, only to find that you don’t qualify for the necessary loan
amount and you can’t actually purchase the home. If that happens, the sale would
fall through and everyone involved, including your real estate agent and the home
seller, would have wasted their time.
For obvious reasons, home sellers want to avoid this situation, which is why most
sellers will only consider your offer if you’ve been pre-approved. Some real estate
agents might ask to see your pre-approval letter before working with you to
ensure you are a serious buyer.
Pre-approval provides everyone -- especially you -- with a little more peace of mind
as you begin your home search.
How to Get Pre-Approved (Not Just Pre-Qualified)
It’s important to know that getting “pre-qualified” is not the same as “pre-approved.”
When you get pre-qualified, the lender asks you to tell them about your financial
life and collects information about your income, debts, assets, and the down
payment you plan to use. But there’s no formal check or investigation into the
information you supply -- the lender takes you at your word.
Pre-approval, on the other hand, is more stringent and formal. You fill out a loan
application and the lender will run a credit check.
You need to supply information on your income, assets, debt, employment history,
down payment, requested loan amount, and more. More importantly, you’ll need
to back it all up with verified documents and proof.
If you do get pre-approved, you’ll get a letter certifying that the lender will
underwrite your mortgage for the amount you requested and at the interest rate
they quote you. That letter shows both agents and sellers that you’re capable
of buying the home you put an offer on.

18. 18CHAPTER 04 | How to Get Pre-Approved to Buy a Home
Assets Current job,
salary, and
employment
history
Income
Debts
Credit history/
credit score
Be prepared to submit:
Statements from
investment accounts
Credit card bills
Documentation on
existing loans
Pay stubs
Tax returns
And more
What You Need to Get Pre-Approved
After you submit all of your information, the lender could accept your request or
deny it -- or they could pre-approve you for a different amount than you asked for.
This decision will be based on a review of your financial statements. Here is what
the lender will look at:
You should be prepared to submit statements from investment accounts, credit
card bills or documentation on existing loans, pay stubs, tax returns, and more.
The lender needs this information to determine your debt-to-income ratio, how
stable your employment is, and what financial resources you have to fall back
on in case of an unexpected life event. These factors indicate whether you can
reasonably afford to repay the loan.
Lenders also want to see your credit score to determine how much of a risk you
may pose. The lower your credit score, the riskier you look to a lender. A low score
could indicate current or prior late payments, high credit utilization, or limited
credit history, all of which increase the likelihood that you may not make all your
mortgage payments on time. The greater this likelihood of default, the higher the
interest rate a lender will offer you.
On the other hand, a high credit score tells the lender you pose less of a risk and
are more likely to make all your loan payments. A high score may qualify you for
a lower interest rate (which can save you tens of thousands of dollars over the life
of your mortgage).

19. 19CHAPTER 04 | How to Get Pre-Approved to Buy a Home
You also need to tell the lender the price of the home you want to buy and how
much you plan to finance. In other words, how much cash you have for a down
payment. The difference between your down payment and the price of the home
is the amount you ask the lender to lend you with a mortgage loan.
Lenders generally require you to make a down payment of 20% of the purchase
price of the home. If you put down less than 20%, you may be charged a higher
interest rate and be required to pay a monthly premium for mortgage insurance
on top of the principal, interest, taxes and homeowner’s insurance that make up
your monthly housing payment. The additional interest expense and the mortgage
insurance premium can limit the amount of the loan for which you can qualify
based on your income, and this can reduce your purchasing power.
What Are the Next Steps?
If your pre-approval request is declined, you can talk to the lender about your
options. You may simply need to request a smaller loan amount. Or you might
need to take a step back and focus on coming up with a larger down payment.
If you have at least a 10% down payment, you should consider partnering with
Unison, a company that invests alongside home buyers to allow them to get the
home they want. Unison can contribute up to half of the down payment as an
investment alongside your 10% down payment, allowing you to make a full 20%
down payment, and get the benefits of doing so. In return, the company hopes to
earn a profit from a portion of any appreciation in the home’s value at the time
it’s sold. If your home declines in value, Unison will also typically share a portion
of the loss.
If you do get pre-approved, you’re ready to find a real estate agent and start
looking at properties. With pre-approval letter in hand, both agents and home
sellers will be more eager to work with you and help you get the home you want.

20. 20
Buying a home is complicated. And if you’re starting the process, that sentence can
feel like a huge understatement.
There’s a lot of legwork involved, from all the preliminary research and sea of
paperwork to get through to crisscrossing town to look at potential properties to buy.
Then there’s the financial side of things. Buying a home is the largest transaction
you’re likely to make in your life. You’ll need careful focus and deliberation to make
sense of all the terms and obligations involved. At the same time, buying a home
is an emotional experience, a rite of passage and will serve as a foundation of your
lifestyle and community. You need to understand and pay attention to your feelings
about the homes, neighborhoods, and community in which you are looking. It is
critical to keep a balance between your ability to make rational decisions and choose
the house that is going to bring you joy and enrich your life.
Needless to say, it’s a lot to think about, manage, and do. That makes it all the
more important to make sure you have the right people on your side when you
start looking for a new home.
The right real estate agent can make or break your home buying experience. You
need to work with someone who is knowledgeable, professional, and accessible --
and the experience is a lot more fun if you like the person too.
The right real estate
agent can make or
break your home
buying experience.
How to Choose a
Real Estate Agent
05

21. 21CHAPTER 05 | How to Choose a Real Estate Agent
Start Your Search with
Professionals
Know the Qualities Your
Ideal Real Estate Agent
Should Possess
Know What to Ask Before
the Final Decision
Watch Out for Red Flags
and Go with Your Gut
1
2
3
4
Here’s what to look for in a real estate agent, along with what to ask and other
factors to consider before you make your final choice.
1. Start Your Search with Professionals
Before you start interviewing individual agents, familiarize yourself with the
standards in this industry. Each state licenses real estate agents, so you can look
up an agent’s information to see if they have a past history of complaints filed
against them.
You might want to search for an agent who is a certified Realtor®
, meaning they’re
a member of the National Association of Realtors (NAR). And some agents will
have additional certifications, like those awarded by the Council of Residential
Specialists or NAR.
These extra designations aren’t necessary, but your agent should definitely
be licensed.
You can also tap your own network to gather an initial pool of agents to choose
from. Ask family members, friends, coworkers, and others in your social circles
who recently bought a home and enjoyed the experience.
From here, you can narrow down your options to a few people you may want
to work with. Then, you can choose among that group of professional,
experienced agents.
2. Know the Qualities Your Ideal Real Estate Agent Should Possess
Let’s say you have about five or six different agents on your short list. How do you
choose the right one? Look for these three critical qualities:
Experience: This doesn’t just mean experience in real estate or with selling homes,
although that’s important, too. Ideally, you want to work with someone with at
least five years in the industry.
Your agent also needs to be an expert in the specific neighborhoods and areas
you are interested in buying. They need to know the particular ins and outs of the
local markets.
On top of that, they should have experience and knowledge with buyers like you,
in your price range, looking at the kind of properties that you’re interested in. They
need to know what it’s like in your world, so they can lead you to the right homes
at the right prices.
Relationships: Your agent isn’t the only professional you need to work with
when you look for and buy a home. You may need access to mortgage lenders,
insurance agents, home inspectors, contractors, and more. A great real estate
agent will maintain relationships with other individuals and businesses that can
help their clients every step of the way.
Personality: Yes, this matters! How well you click and get along with your agent
can have a major impact on your entire experience. You’ll be communicating with
this person a lot. They’ll represent you in negotiations when you put in offers and
help guide you through some difficult decisions.

22. 22CHAPTER 05 | How to Choose a Real Estate Agent
Red Flags
• They’re family or a close friend
• They don’t usually work with
people like you, who want the type
of property you do
3. Know what to Ask Before the Final Decision
The last step before making a final decision? Choose a handful of real estate
agents to interview. Don’t hold back: home buying is a complicated and involved
process and agents you interview have a significant incentive to earn your business.
You’re entitled to get your questions answered and to understand the full picture
before entering into any contracts or agreements. If an agent doesn’t satisfactorily
answer your questions -- or refuses to discuss something with you -- keep looking.
You’ll want to ask questions specific to your situation and needs, but these general
queries will help you get the interview started:
1. What’s your experience?
2. What type of buyers do you typically work with?
3. How do you get paid?
4. How much will it cost me to sell my current home (if this applies to you)?
5. How will we communicate? How often will you be in touch?
6. What’s your process for helping your clients look for a property to buy?
7. Can you provide references or connect me with past clients of yours?
8. What is your strategy for negotiating offers and counteroffers?
Make sure you understand what the entire process of working together looks like,
from start to finish. Know what the agent will take responsibility for, and what
you’ll need to handle on your own.
4. Watch Out for Red Flags and Go with Your Gut
Maybe you found an agent that checks most of the boxes -- but there are a few
things that leave you feeling uncertain. Look into these areas!
If an agent you talk to raises any of these red flags, you might want to continue
your search before choosing someone to work with:
They’re family or a close friend: While it makes sense to support those you love;
you should find another way than tangling your existing relationship into the hard
process of buying a home. There’s a lot of emotion -- and even more money --
involved, so it might be better to keep your personal life out of this major decision
and investment.
They don’t usually work with people like you, who want the kind of property
you do: Again, you need an expert with experience in situations like yours that has
the knowledge to help you make the best decisions at the best price.
At the end of the day, do a gut check before you choose a real estate agent.
Someone might look great on paper, but your intuition says it’s a bad match.
Trust your instincts and continue looking if an agent leaves you with a bad vibe.
There are enough agents out there who deserve your business, so don’t feel stuck
with limited options. Buying a home is a big deal. You have the right to be a little
picky and keep searching until you find the perfect real estate agent for you.

23. 23CHAPTER 05 | How to Choose a Real Estate Agent
Really understand the
finances
See the potential in each
home
Pick an agent who will teach
and guide you
Hire a good home inspector
Do your research and get
organized
Living in a large city often
means sacrificing space
Make sure you have enough
of a down payment
1
2
3
4
5
6
7
Extra: Tips for First-Time Home Buyers
Buying your first home is likely one of the most memorable events of your adult
life. You have scrimped and saved and now it’s finally time to buy. But what should
you expect when you actually go through the process? Like many other rites of
passage, your expectations of what may happen could be a little different than the
reality. To prepare you for your first-time home buying experience, here are some
tips to keep in mind.
1. Really understand the finances
First-time buyers are excited about looking for homes and don’t often take
enough time to understand all the financial aspects of buying a home. You should
understand exactly how much you can afford before you fall in love with a home.
According to Ross Armstrong, a real estate agent in Newport Beach, “buyers will
start the process at the ‘viewing property’ stage instead of first getting the
financials in place. A dream home can be found in the perfect location after weeks/
months of searching, only to find out that home on that street is way out of your
price range. I try to get all my clients to have the financial discussion ASAP.”
2. See the potential in each home
Everyone wants their dream home, but let’s be honest—not all of us can afford
each and every item on our wish lists. It’s crucial to be flexible when looking for
a home for the first time. Chances are that it’s not going to tick every item on your
box, but you can try to get as close as possible.
This is why it’s important to be able to see the true potential in a space. Do you
detest those bright orange walls? While the walls may be eyesores now, it’s
nothing that a couple of coats of paint won’t fix. Do you hate the wood paneling?
Figure out how to tear it down, paint over it or just embrace it by decorating in
a cabin-like style. The point is to not write off a home because of little flaws that
can be easily fixed—especially if it’s in your price range.
3. Pick an agent who will teach and guide you
As a buyer, one of your most valuable tools in your toolbox is your real estate
agent. This is the person you will go to for advice and the person that you will be
emailing online listings to nonstop. Your real estate agent is someone you will be
relying on for expert knowledge, which is why you should be sure to pick someone
who can guide you through this experience in a way that educates you.
“Most first time buyers think the process will take a few weeks and their buying
power is considerably more than it actually is. I always stress the importance of a
great agent who adds value and explains the process rather than merely opening
doors and collecting a commission check. In my experience, the agent is key to
making sure the buyers move through the entire process as smoothly as possible,”
Armstrong says.
4. Hire a good home inspector
In addition to your real estate agent, your home inspector is one of the biggest
assets throughout the home-buying process. This is especially true if you are

24. 24CHAPTER 05 | How to Choose a Real Estate Agent
interested in buying a “fixer-upper,” which is a lower-priced home that needs a lot
of high-cost repairs or remodeling to fix it up.
A home inspector is going to give you an unbiased opinion on how much deferred
maintenance repair work (if any) the home requires and what it might cost to
address. You can use this information to decrease your bid on a home or simply
to prepare for how much you may need to spend once the house is yours.
5. Do your research and get organized
Though your real estate agent will undoubtedly be crucial in guiding you through
the home purchase process, be sure that you are also doing your homework.
Before you go to meet with the agent, familiarize yourself with basic knowledge
about common real estate terms, how a mortgage works, what a lender looks for,
etc. — and have all of your financial documents in order. You don’t want to walk
in completely unprepared when you talk to the real estate agent.
“Do as much home research as possible prior to engaging an agent. Use the agent
for referrals. Have your credit organized and your financials on hand so the lender
can review them quickly,” Armstrong says. “I work closely with the lender on all my
deals and there has to be good communication between both agents and lender
to make sure loan contingency removal does not become an issue.”
6. Living in a large city often means sacrificing space
It’s no secret that living in a metropolitan area can get expensive. Everything from
food to real estate can be priced significantly higher than in the suburbs or rural
areas. When you are purchasing in a large city, you will most likely not have the
amount of space that you envisioned in your first home.
However, city living has its advantages. While you may not have guest rooms or
a spacious kitchen, you will probably be close to high quality entertainment and
dining options. Some people even view a smaller living space as a positive because
it prevents them from accumulating a lot of things they don’t need. Of course,
if you find that you need more space for your kids (or yourself), then you might
consider moving outside the city to get a little more bang for your buck.
7. Make sure you have enough of a down payment
Whether you are buying a house for the first time or not, the amount of your
down payment will be a big determinant of how much home you can afford. If you
find that many of the homes in your area are out of reach without a higher down
payment, or if you want to reserve cash for other purposes, you should check out
the Unison HomeBuyer program from Unison.
Conclusion
Buying a home for the first time is a challenging and exciting time. Just be sure
to do your research and learn as much about the process as you can, so you can
tackle everything proactively and feel confident throughout your home search.
Before you know, it you’ll be moving into your new home.

25. Vol
1
2017
Thanks for reading the first volume of Unison’s guide
to home buying. You can find more content like this on our
blog: www.unison.com/blog.
If you have any questions or would like to speak with
a specialist about Unison or any of our programs, contact
ps@unison.com or call 1-800-588-7600.
unison.com