Tammy Ferguson
Magnolia Mortgage, LLC
Start here
The Southern Indiana home-buying process
Buying a home is a series of connected decisions. Your financing affects the homes you can consider. The property and offer terms affect inspections, appraisal, insurance, and closing. A good plan helps you understand deadlines, compare risks, and avoid making decisions under unnecessary pressure.
1
Prepare
Review finances, compare lenders, receive preapproval, and understand your cash requirements.
2
Search and investigate
Define your needs, tour homes, compare values, review disclosures, and investigate the property.
3
Contract and close
Negotiate the offer, complete inspections, appraisal, underwriting, title work, walkthrough, and closing.
Educational notice: This page provides general real estate education, not legal, tax, lending, inspection, engineering, or financial advice. Contracts and laws can change. Review your documents and consult the appropriate licensed professional about your situation.
Step 1
Compare mortgage lenders and get preapproved
A strong preapproval helps establish a realistic budget and shows sellers that a lender has reviewed key financial information. Ask each lender about the complete cost—not only the advertised interest rate.
Shane Bennett
New American Funding
Your choice: These contacts are provided as convenient resources. You are free to choose any lender. Kyle and the brokerage do not guarantee a provider’s services, pricing, approval, availability, or performance.
Questions to ask a lender
Loan and eligibility
- Which loan programs fit my situation?
- Is the property type eligible?
- What credit, income, reserve, and debt requirements apply?
- How long is the preapproval valid?
Rate and fees
- What is the interest rate and APR?
- Does the rate require points?
- What lender and third-party fees apply?
- When can the rate be locked?
Closing and service
- How quickly can you close?
- Who handles the file day to day?
- When will I receive estimates and updates?
- What could delay final approval?
Financing options
Common home-loan programs
Conventional
May offer flexible property options and several down-payment structures. Mortgage insurance may apply when the down payment is below the lender’s threshold.
FHA
Government-insured financing with property-condition and appraisal requirements. Mortgage insurance and loan limits apply.
VA
Available to eligible veterans, service members, and certain surviving spouses. Eligibility, entitlement, appraisal, funding-fee, and occupancy rules apply.
USDA
May offer qualified buyers financing in eligible rural areas, subject to location, household-income, property, and underwriting requirements.
Down-payment assistance
Programs may help qualified buyers with down payment or closing costs. Assistance can carry income, credit, occupancy, education, repayment, or resale requirements.
Construction and renovation
Special financing may be available for building or renovating, but usually requires additional plans, approvals, contractor documentation, draws, and inspections.
Planning tool
Estimated monthly housing payment
This calculator provides a planning estimate only. It does not include every possible fee and is not a loan quote or approval.
Estimated monthly total$0Principal and interest plus entered taxes, insurance, HOA, and mortgage insurance.
Budget tool
Simple affordability estimate
This simplified tool estimates a housing budget from gross income and monthly debt. A lender’s calculation may differ and will consider credit, loan rules, assets, property costs, and documented income.
Estimated maximum principal-and-interest budget$0/monthThis is an educational estimate, not a lending standard or approval.
Step 2
Understanding the Indiana buyer agency agreement
A written buyer agreement explains the relationship between the buyer and the real estate brokerage. Before touring homes, read the actual agreement carefully and ask questions about every blank, deadline, duty, and compensation term.
Important distinction: The nationwide MLS practice change generally requires a written buyer agreement before an MLS participant working with a buyer tours an MLS-listed home. It does not make compensation fixed, and it does not dictate one mandatory relationship or one standard agreement for every buyer.
Services and duties
The agreement may describe property searches, showings, market analysis, offer preparation, negotiations, inspections, transaction coordination, confidentiality, and other services.
Duration and scope
Review the start and end dates, geographic area, property types, price range, exclusivity, protection period, and what happens when the agreement ends.
Compensation
Review the amount or method, when it is earned, who may pay it, how seller or listing-broker payments are credited, and whether the buyer could owe a difference.
Termination
Ask how either party may terminate, whether written notice is required, what obligations survive termination, and whether a protection period applies.
Confidentiality and loyalty
Discuss what information remains confidential, how conflicts are addressed, and whether limited or dual agency could arise in a transaction.
Negotiable terms
Compensation and other agreement terms are negotiable. Never sign a blank or incomplete document, and keep a completed copy for your records.
Questions to ask before signing
- What services will you provide?
- Is the agreement exclusive?
- How long does it last?
- What areas and property types are covered?
- How is compensation calculated?
- What happens when a seller or listing broker pays part or all of the compensation?
- Could I owe any unpaid difference?
- How can the agreement be terminated?
- What obligations continue after termination?
- How will conflicts, limited agency, or dual agency be handled?
Step 3
Build a focused home search
Needs
Location, school needs, commute, accessibility, number of bedrooms, property type, financing eligibility, and essential features.
Preferences
Style, finishes, yard, garage, basement, acreage, view, neighborhood character, workshop, or outdoor space.
Long-term cost
Taxes, insurance, utilities, HOA dues, maintenance, repairs, commuting, flood insurance, and future improvements.
Search sources may include MLS listings, new construction, open houses, property alerts, builder inventory, and publicly marketed homes. “Coming soon” and off-market opportunities depend on availability, seller permission, brokerage rules, and fair-housing requirements.
Step 4
What to evaluate during showings
Site and drainage
Grading, standing water, erosion, retaining walls, driveway slope, trees, drainage paths, and neighboring uses.
Exterior
Roof, siding, masonry, windows, doors, decks, porches, gutters, foundations, and visible maintenance.
Systems
HVAC, electrical service, plumbing, water heater, sewer or septic, well, insulation, and ventilation.
Layout and resale
Room flow, storage, accessibility, parking, additions, bedroom function, future use, and likely resale appeal.
A showing is not an inspection. Avoid operating equipment, moving belongings, opening unsafe areas, or entering crawlspaces, attics, roofs, or restricted spaces without permission.
Step 5
Preparing and negotiating an offer
Price is only one part of an offer. Sellers may also compare financing, earnest money, contingencies, appraisal terms, inspection rights, closing date, possession, concessions, included items, and the likelihood of a smooth closing.
Price and financing
Review comparable sales, competition, condition, loan type, down payment, appraisal risk, and your maximum acceptable terms.
Protections and deadlines
Understand financing, inspection, appraisal, sale-of-home, title, insurance, and other provisions included in the offer.
Closing and possession
Define the target closing date, when possession transfers, included personal property, utility responsibilities, and any post-closing occupancy.
Step 6
Home inspections and specialized evaluations
A general home inspection helps a buyer learn about visible and accessible systems and components. Depending on the home, location, age, utilities, and findings, additional inspections may be appropriate.
General inspection
Visible structure, roof, exterior, electrical, plumbing, HVAC, interior, insulation, ventilation, and installed components within the inspector’s scope.
Health and environmental
Radon, mold or moisture, air quality, water quality, lead-based paint, asbestos, or other testing by qualified professionals.
Utilities and site
Sewer scope, septic inspection, well testing, drainage, pool, chimney, fireplace, retaining wall, or private-road review.
Specialists
Structural engineer, electrician, plumber, HVAC contractor, roofer, foundation contractor, arborist, surveyor, or other specialist.
Attend when possible: Ask the inspector to explain major findings, safety concerns, shutoffs, maintenance items, and which observations need additional evaluation.
Inspection contacts
Southern Indiana home inspection resources
Certainty Home Inspections
Residential and commercial inspection services in Louisville and Southern Indiana.
Ingle Home Inspections
Residential and commercial property inspections serving Southern Indiana and surrounding areas.
The Home Inspectors
Licensed and insured home inspection services in New Albany, Louisville, and surrounding communities.
Your choice: Buyers are free to choose any properly qualified inspector. Verify current Indiana licensing, insurance, service area, pricing, availability, scope, exclusions, optional tests, report delivery, and cancellation terms directly with the provider.
Step 7
Appraisal and property value
The lender generally orders the appraisal to evaluate collateral value and applicable property requirements. The appraiser is not the buyer’s home inspector and does not guarantee the condition of the property.
- Provide requested access and information promptly.
- Understand whether the contract contains an appraisal provision.
- Ask the lender how repairs or appraisal conditions could affect closing.
- Discuss options before agreeing to cover an appraisal shortage.
- Do not assume a high appraisal means the property has no defects.
Step 8
Loan processing and underwriting
Document verification
Income, employment, assets, debts, credit, identity, insurance, and transaction funds are reviewed.
Property review
Appraisal, title, insurance, flood information, loan eligibility, and property conditions are evaluated.
Underwriting conditions
The lender may request explanations, updated statements, documentation, repairs, or additional verification.
Final approval and clear to close
Final approval occurs only after the lender confirms that all required conditions are satisfied.
Avoid financial surprises: Before closing, do not open new credit, finance furniture or a vehicle, move large unexplained sums, change employment, co-sign debt, or miss payments without discussing the effect with your lender.
Steps 9–10
Title work, insurance, walkthrough, and closing
Title review
The title company researches ownership, liens, judgments, taxes, legal description, and other recorded matters. Review the title commitment, exceptions, survey needs, and owner-policy options.
Final walkthrough
Confirm agreed repairs, included items, vacancy, general condition, utilities, and possession arrangements shortly before closing.
Closing day
Follow verified instructions for identification, documents, funds, signing, recording, keys, possession, and utility transfers.
Wire-fraud warning: Never trust changed wiring instructions sent only by email or text. Independently call the title company using a previously verified number before sending money.
After closing
Your first steps as a homeowner
Secure the property
Change locks and codes, locate shutoffs, test safety devices, and store closing and inspection documents securely.
Handle records and deductions
Update your address and review any property-tax deductions or exemptions for which you may be eligible with the county or a qualified advisor.
Plan maintenance
Create seasonal schedules, track system ages, address water intrusion quickly, and maintain an emergency reserve for repairs.
Printable tool
Home buyer checklist
Before shopping
- Review credit and monthly budget
- Compare lenders and loan estimates
- Receive a documented preapproval
- Estimate cash needed for closing
- Choose a buyer representative
- Review and sign the written buyer agreement
- Define needs, preferences, and deal breakers
After an accepted offer
- Deliver earnest money as instructed
- Complete the loan application
- Schedule inspections promptly
- Review disclosures, reports, and deadlines
- Arrange insurance
- Respond to lender and title requests
- Review appraisal and title documents
- Avoid new debt or financial changes
- Complete the final walkthrough
- Verify funds and closing instructions
Local resources
Southern Indiana buyer research
Government and licensing
Indiana Real Estate Commission→ Indiana Home Inspectors Board→ Indiana Department of Revenue→ Indiana BMV→County property research
Harrison County→ Floyd County→ Clark County→ Crawford County→ Washington County→Explore local real estate guides
Frequently asked questions
Indiana home buyer questions
How much money do I need to buy a home?
The amount depends on the loan program, required down payment, earnest money, inspection costs, appraisal, prepaid taxes and insurance, lender fees, title charges, and any seller or lender credits. A lender should prepare a personalized estimate before you make an offer.
Do I need a 20 percent down payment?
Not necessarily. Conventional, FHA, VA, USDA, and down-payment-assistance programs may offer lower-down-payment options for qualified buyers. Loan availability and terms depend on eligibility and current underwriting guidelines.
What is a mortgage preapproval?
A preapproval is a lender’s preliminary review of your credit, income, debts, assets, and loan eligibility. It is stronger than a casual online estimate but remains subject to verification, underwriting, appraisal, property eligibility, and final approval.
Should I speak with more than one lender?
Buyers may compare lenders, rates, fees, loan programs, communication, closing timelines, and service. Compare written loan estimates and ask whether quoted rates require discount points.
What is an Indiana buyer agency agreement?
It is a written agreement describing the relationship between a buyer and real estate brokerage. It may address services, duties, duration, exclusivity, property types, geographic area, compensation, confidentiality, and termination. Read the specific agreement carefully and ask questions before signing.
Why must I sign an agreement before touring?
Real estate professionals participating in an MLS generally must have a written buyer agreement with a buyer before touring an MLS-listed property. The agreement’s terms are negotiable and should be understood before signing.
Is buyer-agent compensation fixed by law?
No. Real estate compensation is negotiable. The buyer agreement should explain the compensation obligation and how any amount offered or paid by a seller, listing broker, builder, or other source may be credited.
Can a seller still help with buyer-agent compensation?
Compensation and seller concessions may be negotiated as part of an offer, subject to the purchase agreement, seller approval, loan rules, appraisal considerations, and other transaction requirements.
Can I attend an open house without my agent?
A buyer may attend an open house, but should disclose whether they are represented and follow the instructions provided at the property. An open-house host commonly represents the seller unless otherwise disclosed.
What is earnest money?
Earnest money is a deposit delivered under the purchase agreement to show the buyer’s good-faith intent. The contract controls when it is due, who holds it, and whether it is refundable.
How long does buying a home take?
Timelines vary. Financing, inspections, appraisal, title work, repairs, underwriting, and possession terms all affect the closing date. Many financed transactions take several weeks after an accepted offer.
What is a home inspection?
A home inspection is a visual evaluation of accessible components and systems by a qualified inspector. It is not an appraisal, warranty, insurance policy, code inspection, or guarantee against future failures.
Which inspections should I consider?
Depending on the property, buyers may consider a general home inspection, radon test, wood-destroying-insect inspection, sewer scope, septic inspection, well and water testing, mold or air-quality evaluation, chimney inspection, structural review, pool inspection, or specialist evaluations.
Should I inspect a new-construction home?
New homes can still have incomplete, damaged, or improperly installed components. Buyers may consider pre-drywall, final, and one-year warranty inspections when permitted by the builder and contract.
What happens after the inspection?
Your options depend on the purchase agreement and inspection language. A buyer may accept the property, request repairs or credits, seek specialist evaluations, renegotiate where permitted, or exercise a contractual termination right.
What is an appraisal?
An appraisal is an independent opinion of value generally ordered for the lender. It is different from a home inspection and does not provide a complete assessment of property condition.
What happens if the appraisal is low?
Options depend on the contract and financing. The parties might renegotiate, the buyer might contribute additional funds, the lender may review additional information, or a contractual appraisal or financing provision may apply.
What is title insurance?
Title insurance protects against certain covered title defects. A lender policy generally protects the lender, while an owner policy generally protects the buyer’s ownership interest subject to its terms and exclusions.
What is the final walkthrough?
The final walkthrough is the buyer’s opportunity to confirm the property’s general condition, agreed repairs, included items, and vacancy or possession status before closing. It is not a replacement for an inspection.
What should I bring to closing?
Follow the title company’s instructions. Buyers commonly need government-issued identification and verified funds. Confirm wiring instructions using a trusted phone number because real estate wire fraud is a serious risk.
When should I transfer utilities?
Coordinate utility transfers before closing or possession so service is not interrupted. The correct date depends on the contract and when the buyer receives possession.
What should I do after closing?
Keep closing documents, update your address, confirm insurance, apply for any eligible property-tax deductions, change locks or access codes, learn utility shutoffs, and create a maintenance plan and emergency reserve.
Ready to begin your home search?
Talk with Kyle about financing readiness, buyer representation, target areas, and the next step in your Southern Indiana purchase.