Buying your first home is exciting—and yes, the market can be competitive, especially in starter-home price ranges around Indy and the northern suburbs. This guide keeps things simple and local so you know exactly what to do next.
1) Get financially ready (and de-stress your search)
- Budget the whole number. Plan for down payment plus closing costs (often ~2–4% of the price), inspections, appraisal, and your first year of insurance and taxes.
- Down payment myths. Many buyers purchase with 3–5% down on conventional loans; FHA options may allow as low as 3.5% down (credit and program rules apply). VA and USDA can be 0% for eligible buyers.
- Boost approval power. Pay down revolving debt where possible, avoid new credit lines, and keep consistent employment documentation.
2) Pre-approval with a local lender is a competitive edge
- Why local matters: Listing agents know the strongest local lenders can close on time, answer on weekends, and use appraisers familiar with our area—this can sway a seller in your favor.
- Ask about: Rate options (fixed vs. ARM), lender credits, appraisal turn times, underwriting speed, and IHCDA/other down-payment assistance programs you may qualify for.
- Upgrade to “TBD underwrite.” Some lenders will fully underwrite you before you find a home. That’s stronger than a basic pre-qual letter and helps you compete.
3) Choose the right community (lifestyle, schools, commute)
Central Indiana offers a range of vibes and price points:
- Fishers – parks, restaurants, good commuter access via I-69.
- Carmel – arts & amenities, paths, roundabouts, strong schools.
- Westfield – Grand Park area growth, new construction options.
- Noblesville – historic square, White River access, mix of old/new.
- Boone/Hendricks/Johnson/Marion highlights:
- Zionsville – village charm and trails.
- Brownsburg/Avon/Plainfield – suburban convenience west of I-465.
- Greenwood/Center Grove – value south of I-465 with strong amenities.
- Downtown/near-downtown Indy – walkability, townhomes/condos, cultural districts.
How to narrow fast: Map your daily routine (work, daycare, gym, church), test drives at rush hour (I-465, I-69, US-31, I-65), and check school ratings, HOA rules, and local parks.
4) Touring with purpose (spot costly surprises early)
- Must-have vs nice-to-have list keeps you objective.
- Age/condition check: Roof, furnace/AC, water heater, windows, electrical panel.
- Basements & drainage: Sump pumps, signs of past moisture; common in many Indy-area homes.
- Utilities: City vs well/septic (rural edges), fiber availability for WFH.
- Environmental: Radon testing is common here; consider a test during inspection.
- FEMA flood maps: Verify around rivers/creeks and new subdivisions.
5) Multiple-offer playbook (win smart, not reckless)
- Price strategy: Use recent comps; consider an escalation clause with a firm cap.
- Appraisal gap plan: If the home appraises low, you’re prepared to cover a defined amount out-of-pocket (discuss risks with your lender/agent first).
- Stronger terms without losing protection:
- Higher earnest money signals commitment (held by title company).
- Flexible closing/possession to fit seller’s timeline.
- Keep inspection rights, but focus on major issues (health/safety/structural) to stay competitive.
- Local pre-approval letter and quick communication from your lender can be the tiebreaker.
- Fair housing note: We typically avoid “buyer love letters” that disclose personal traits; it helps reduce fair-housing risk for all parties.
6) Inspections & protection
- Standard home inspection + specialized add-ons: radon, sewer scope (older areas), termite/WDI, and well/septic where applicable.
- Title work & owner’s title insurance protect against hidden title defects.
- Homeowners insurance: verify coverage for basements, sump pump/water backup, and high-value items.
- HOA/CCR review: Understand fees, rules on fences, rentals, and exterior changes.
7) Timeline at a glance (typical)
- Pre-approval: 1–3 days (faster with full docs)
- Tour & offer: 1–3 weeks (varies by inventory)
- Under contract: 30–45 days to close is common
- Keys: Final walk-through + closing at the title company
8) Costs to expect (ballpark)
- Inspections: ~$400–$700 total (varies by size/scope)
- Closing costs: Often ~2–4% of purchase price (lender/title/escrows)
- Earnest money: Often 1–2% locally (credited at closing)
9) New construction vs existing homes
- New builds: Longer timelines, predictable systems, but landscaping/window treatments/add-ons can add up. Bring your agent on the first visit; the builder pays them, and you get representation.
- Resale: Mature neighborhoods, quicker closings, and room to negotiate condition/credits.
10) Your next three steps
- Five-minute lender intro (I’ll connect you with trusted local options).
- Neighborhood fit session (schools, commute, amenities, budget).
- VIP touring plan (on-market + coming-soon/new construction
Quick Checklist (save this)
- ☐ Get pre-approved with a local lender (ask about IHCDA/DPA options)
- ☐ Define monthly budget + full cash-to-close number
- ☐ Pick 2–3 target communities (test your commute)
- ☐ Create must-have / nice-to-have list
- ☐ Plan inspections (general + radon; sewer/well/septic as needed)
- ☐ Review HOA rules & insurance needs
- ☐ Discuss multiple-offer strategy before you fall in love with a house
Thinking about your first home? I’ll tailor a plan to your budget and favorite neighborhoods and introduce you to the right local lender for your scenario. Give me a call and I will be glad to help create a plan for you through this journey.
Tim Houterloot
