If you're getting ready to buy a home in the Tri-Cities, I don't expect you to already know how to buy a house.

That's part of why you hire professionals to help you.

Recently, a buyer reached out to me after finding me on TikTok. She had already been working with another real estate agent, but she felt like she wasn't being listened to.

As we started talking, I realized something else.

She didn't understand some of the basic pieces of the home-buying process.

She didn't know what a mortgage pre-approval letter was.

She didn't know what one looked like.

She wasn't familiar with the different types of financing that might come up in a home search.

She didn't understand the buyer brokerage services agreement or what it meant to have an agent representing her.

And none of that bothered me.

What bothered me was the idea that a buyer could be out looking at houses while still feeling completely in the dark about the process.

I told her something that I tell my clients all the time:

Client education is very important to me.

I'm Kim Feliciano, a REALTOR® in the Tri-Cities helping buyers and sellers in Richland, Kennewick, Pasco, West Richland and Benton City.

I make a lot of educational videos. I write articles like this one. I answer questions.

I do that because I don't think my job is simply to unlock doors and write an offer when you find a house you like.

I want you to understand what we're doing and why we're doing it.

You Don't Need to Know How to Buy a House Before Calling a REALTOR®

This is probably the first thing I want buyers to hear.

You don't need to study for an exam before contacting me.

You don't need to know the difference between conventional, FHA, VA or USDA financing.

You don't need to know how earnest money works.

You don't need to know what an appraisal is.

You don't need to know what contingencies are.

You don't need to know what a buyer brokerage services agreement is.

You don't even need to know what questions you're supposed to ask yet.

That's okay.

What I do want is for you to learn those things as they become relevant to your purchase.

There's a big difference between being a first-time buyer who doesn't know something and being a buyer who was never given the opportunity to understand it.

This Is Why I Start With a Buyer Consultation

Before we start running around Richland, Kennewick and Pasco looking at houses, I want to talk to you.

I want to understand:

What are you trying to accomplish?

Why are you buying?

Is this your first home?

Are you relocating?

Do you already own a home?

When do you want to move?

What do you need in the house?

What would you like to have?

What's your comfortable monthly budget?

What concerns do you already have?

And what don't you understand yet?

Sometimes that last question opens up the most important conversation.

Because I don't know what you don't know until we talk about it.

What Is a Mortgage Pre-Approval Letter?

Let's start with something that seems basic if you've bought several houses but can be completely unfamiliar if you've never done this before.

A mortgage pre-approval letter is generally documentation from a mortgage lender showing that the lender has reviewed certain financial information and determined that you may qualify for financing, subject to the lender's conditions and the specific property and transaction.

Your lender is the person who should explain exactly what was reviewed, what your approval is based on, what loan programs may be available to you and what still needs to happen before final loan approval.

But as your REALTOR®, I want you to understand what the letter is and why we're talking about it.

If you tell me:

“Kim, I already got pre-approved.”

Great.

I'll probably ask you to send me the letter.

If you've never seen it, I'll explain what I'm asking for.

I'm not going to assume you know.

A Pre-Approval Isn't the Same Thing as Final Loan Approval

This is another distinction buyers should understand early.

A pre-approval is an important step.

It isn't a promise that a lender will fund any house you decide to buy.

The lender still has work to do.

The property matters.

Your finances still matter.

The appraisal may matter.

Your documentation matters.

The loan program matters.

Underwriting matters.

And changes to your finances during the transaction can matter.

That's why I don't want buyers making large purchases, opening new credit accounts, moving money around without explanation or making employment changes without talking with their lender during the home-buying process.

Your qualified mortgage lender should tell you what could affect your financing.

Your Pre-Approval Amount Isn't Necessarily Your Shopping Budget

This is one of my biggest buyer conversations.

Let's say a lender approves you up to $500,000.

Does that mean we should immediately start shopping for $500,000 houses?

Not necessarily.

I want to know what payment feels comfortable to you.

You still have a life after you buy the house.

You have groceries.

Cars.

Vacations.

Savings.

Emergencies.

Kids.

Pets.

Hobbies.

Repairs.

Whatever your life looks like.

A lender determines what you qualify for under the applicable lending guidelines.

You determine what you're comfortable spending.

Those aren't always the same number.

Who Explains the Different Types of Home Loans?

This is where I want to be clear about roles.

As your REALTOR®, I can help you understand why financing matters to the real estate transaction.

For example, the type of financing you're using can affect how we structure an offer and what we need to think about with a particular property.

But I'm not your mortgage lender.

Your qualified lender should explain the loan programs you may qualify for and the financial differences between them.

Depending on the buyer and property, you may hear terms such as:

Conventional.

FHA.

VA.

USDA.

Those aren't interchangeable products, and not every buyer or property qualifies for every program.

Don't choose your mortgage because somebody made a 30-second video telling you one loan is “the best.”

Have a qualified lender evaluate your actual situation.

My job is to make sure you know that this is a conversation you should be having.

Your Financing Can Affect Which Homes We Look At

This is another reason I want financing discussed before we fall in love with a house.

Imagine we find a property that looks perfect online.

Then we discover something about the property that could affect financing.

Maybe it's condition.

Maybe it's property type.

Maybe it's an unusual feature.

Maybe it's a manufactured home.

Maybe it's a multi-unit property.

Maybe you're considering new construction with a builder incentive.

I don't want to discover after you've emotionally moved into the house that we never talked about whether your financing and that property work together.

This is a team effort.

You.

Me.

Your lender.

And later, other professionals as needed.

What Is a Buyer Brokerage Services Agreement?

This is another thing I don't expect you to magically understand.

In Washington, real estate brokerage relationships are governed by state law, and buyers should understand the brokerage services agreement they're being asked to sign.

This agreement addresses the brokerage services being provided and the relationship between you and the real estate firm.

Before you sign it, you should have an opportunity to understand it.

What services are being provided?

How long does the agreement last?

What area or type of property does it cover?

How is compensation addressed?

What responsibilities are involved?

What happens if you have questions about the agreement?

I'm not going to hand you a document and assume the title explains everything.

And if you need legal interpretation of a contract or agreement, that's when I want you talking with a qualified Washington real estate attorney.

Representation Shouldn't Be a Mystery

I think buyers should know who their agent represents.

That sounds obvious until you realize how many people start clicking buttons online, attending open houses, calling listing agents and touring homes without understanding the relationships involved.

If I'm representing you as my buyer client, I want you to understand my role.

I'm helping you navigate the real estate side of the transaction.

I'm helping you evaluate properties.

I'm researching.

I'm helping you understand market information.

I'm helping you prepare and negotiate offers.

I'm helping you track deadlines.

I'm helping you work through the transaction.

And I'm helping you identify when we need another professional involved.

I don't replace your lender.

I don't replace your inspector.

I don't replace your attorney.

I don't replace your tax professional.

Part of good representation is knowing when somebody else needs to answer the question.

What Is Earnest Money?

Here's another phrase buyers hear constantly.

Earnest money.

If you've never bought a house, why would I assume you know what that means?

I describe earnest money as a monetary promise that you're going to perform under the purchase agreement in good faith.

The amount and terms are part of the offer strategy.

In Washington, your signed purchase agreement controls what happens with earnest money, including the applicable deadlines and circumstances involving its disposition.

It isn't something I want you casually agreeing to without understanding it.

Before we write an offer, you should know:

How much earnest money we're proposing.

When it would need to be delivered.

Where it's going.

And that there can be circumstances where earnest money becomes disputed or is potentially at risk.

If a legal dispute comes up, that's attorney territory.

What Money Might I Spend Before Closing?

This surprises first-time buyers too.

Your down payment isn't necessarily the first money you'll spend.

Depending on your transaction, you may have earnest money due shortly after mutual acceptance.

If you conduct a home inspection, you'll generally pay the inspector.

If an appraisal is required, there may be an appraisal-related cost.

There can be other transaction expenses depending on your financing and purchase.

Then there's your actual cash needed at closing.

Your lender should provide and explain the financing-related numbers for your specific loan.

I want you prepared for the sequence so you're not surprised when we're under contract and money starts becoming due.

What Happens When I Find a House I Like?

This is where education becomes really important.

I don't want the first serious conversation about buying a house to happen while you're standing in the kitchen saying:

“I love it. Let's offer!”

First, how do you feel about the house?

Does it meet your needs?

How long do you think you'll live there?

What might you need to spend after moving in?

Are there visible maintenance issues we should be thinking about?

How does it compare with the other homes you've seen?

Then I look at the market information.

Comparable properties.

Current competition.

Listing history.

Property information.

Offer considerations.

Your financing.

Your goals.

I don't tell you what decision to make.

It's your house.

I give you information so you can make an informed decision.

Asking Price and Value Aren't the Same Conversation

A seller can ask whatever price they choose.

That doesn't automatically tell us what the home is worth to the market or what it's worth to you.

This is where buyers sometimes get nervous.

They think:

“The house is listed for $450,000, so I guess that's what we have to offer.”

Not necessarily.

Or:

“It's been sitting, so let's offer $400,000.”

Also not necessarily.

We look at the information.

Then we develop an offer strategy based on the house, market, competition and how much you actually want the property.

What Happens After My Offer Is Accepted?

This is another point where I don't want you waking up the next morning thinking:

“Okay...now what?”

Once we're under contract, things can start moving quickly.

Depending on your agreement, we may be dealing with:

Earnest money.

Inspection deadlines.

Lender documentation.

Appraisal.

Title.

Insurance.

Repair negotiations.

Additional contingencies.

Closing documents.

Final walkthrough.

Possession.

Not every transaction is identical.

Your signed agreement determines the actual obligations and deadlines.

But I want you to know what we're watching and what comes next.

When my buyers go under contract, I send them information about the next steps and timeline because I don't want them guessing.

What Is a Home Inspection?

A home inspection is another area where education matters.

The inspector isn't there to tell you whether you should buy the house.

And I don't expect a house to receive a perfect report.

Homes have things going on.

Especially older homes.

I want you to understand the major findings.

What appears to be normal maintenance?

What needs further evaluation?

What could affect safety?

What could become expensive?

What should we ask another qualified professional about?

Then we look at your purchase agreement and decide how you want to proceed.

The decision belongs to you.

What Is an Appraisal?

The appraisal and inspection aren't the same thing.

A home inspector is evaluating the condition of the property within the scope of the inspection.

An appraiser is performing an appraisal for the lender when one is required as part of financing.

Those professionals have different jobs.

I've worked in mass appraisal, so property valuation is something I naturally pay attention to.

But my background doesn't replace the lender's appraisal or the appraiser performing it.

I use my experience to help you understand the real estate information we're looking at and ask better questions.

What Is a Final Walkthrough?

Toward the end of the transaction, we generally conduct a final walkthrough.

We're not doing another full home inspection.

We're looking to see that the property is in the expected condition and addressing things relevant to the purchase agreement, including agreed repairs when applicable.

This is the homestretch.

By this point, I don't want you wondering what a final walkthrough is because nobody mentioned it until I texted:

“See you at the walkthrough tomorrow!”

You should know it's coming.

You're Allowed to Ask Me Questions

Please do.

If you don't understand something, ask.

If I use a real estate term you don't recognize, stop me.

If your lender says something you don't understand, ask the lender to explain it.

If an inspector points something out and you aren't sure what it means, ask questions.

Buying a house is too expensive for you to sit quietly because you're worried your question sounds basic.

I'd rather explain something three times than have you sign something you don't understand.

Social Media Should Help You Learn, Not Replace Your Professionals

There's a reason I make so many educational videos.

People are already on TikTok, Instagram, YouTube and Google trying to figure out how buying a house works.

I want to meet you there and answer those questions.

That's also why I write articles like this one.

Maybe you don't know enough yet to schedule a buyer consultation.

Maybe you're six months away.

Maybe you're just trying to figure out what a pre-approval is.

Start learning.

But when it's time to apply that information to your actual finances, contract or property, bring in the appropriate professional.

A 60-second video can help you understand the question.

It can't underwrite your mortgage or inspect your house.

You Shouldn't Feel Like You're Bothering Your REALTOR®

This matters to me.

You shouldn't avoid asking a question because you think your agent is too busy.

You shouldn't feel embarrassed because you don't know a term.

And you shouldn't feel like the goal is to hurry you into an offer before you understand what you're doing.

Sometimes the answer will be simple.

Sometimes I'll need to research something.

Sometimes I'll say:

“That's a lender question.”

Or:

“Let's ask the inspector.”

Or:

“That's something I'd want an attorney to interpret for you.”

I don't need to pretend to be every professional in the transaction.

I need to help you know what needs to be answered.

What Should Your REALTOR® Explain Before You Start Looking?

At minimum, I want my buyers to understand the basic roadmap.

Who represents you?

What does your buyer brokerage services agreement mean?

Have you spoken with a qualified lender?

What is your pre-approval?

What's your comfortable budget?

What financing are you considering?

What money might you need before closing?

What is earnest money?

What happens when you make an offer?

What happens if it's accepted?

What is an inspection?

What is an appraisal?

What happens before closing?

And who should answer the different questions that come up?

You don't need to memorize everything during one conversation.

You need enough understanding to know what we're doing and where we're going next.

A Real Buyer Reminded Me Why This Matters

The buyer who recently reached out to me from TikTok reminded me exactly why I create so much educational content.

She had already started working with another agent.

But she felt like she wasn't being listened to.

As we talked, I realized she hadn't been given some of the foundational information I would want a buyer to have.

She didn't know what a pre-approval letter was or what one looked like.

She didn't understand some of the financing terminology.

She wasn't familiar with the buyer brokerage services agreement.

My reaction wasn't:

“How do you not know this?”

My reaction was:

“Okay. Let's start there.”

Because you can't make informed decisions with information nobody gave you.

Common Mistakes New Home Buyers Make

One mistake is thinking you need to know everything before contacting a REALTOR®.

You don't.

Another is touring homes before understanding your financing.

Another is assuming the maximum pre-approval amount should become your budget.

Another is signing documents without asking questions because you feel pressured or embarrassed.

Another is getting mortgage advice from social media without discussing your actual finances with a qualified lender.

Another is assuming the agent, lender, inspector and appraiser all do the same thing.

And one of the biggest mistakes is staying quiet when you don't understand something.

Ask.

FAQ: What Should I Know Before Looking at Homes in Tri-Cities, WA?

Do I need a pre-approval before contacting a REALTOR®?

You can contact me before you're pre-approved. If you'll be financing your purchase, however, I generally want a qualified lender involved before we seriously shop so we understand your financing and comfortable budget.

What does a mortgage pre-approval letter look like?

The format varies by lender. It's generally a letter or document from the lender reflecting a pre-approval based on the lender's review and conditions. Your lender should explain exactly what your particular pre-approval means.

Does my REALTOR® decide which mortgage is best for me?

No. I can help you understand how financing interacts with the real estate transaction, but a qualified mortgage lender should evaluate your finances, eligibility and available loan options.

Do I have to sign an agreement with a buyer's agent in Washington?

Washington law requires written brokerage services agreements in specified brokerage relationships. You should understand the agreement you're being asked to sign, including the services, duration and compensation provisions. If you need legal interpretation, consult a qualified Washington real estate attorney.

Should my REALTOR® explain earnest money before I make an offer?

I believe you should understand the earnest money terms you're proposing before signing an offer, including the amount and applicable delivery deadline. Your signed purchase agreement controls the legal obligations.

What if I don't understand something during the buying process?

Ask. You aren't expected to know real estate, mortgage lending, inspections, appraisal and contracts before you've ever bought a house. Your professionals should help you understand their respective parts of the process.

Is it okay if I'm a first-time buyer and know absolutely nothing?

Yes.

Seriously.

Start there.

Client Education Is Part of How I Work

I don't expect you to come to me already knowing how to buy a house.

I expect you to come to me with questions.

Maybe you found me because of one of my TikTok videos.

Maybe you read one of these articles.

Maybe someone sent you my name.

Maybe you've already been looking at homes and suddenly realized you don't understand what's happening.

That's okay.

I'm Kim Feliciano, a REALTOR® in the Tri-Cities helping buyers and sellers in Richland, Kennewick, Pasco, West Richland and Benton City.

Client education is important to me because I want you participating in your purchase rather than simply being carried through it.

You should understand why we're looking at certain information.

You should understand the decisions in front of you.

You should know when something is my lane and when we need your lender, inspector, attorney or another professional involved.

And you should never feel embarrassed to say:

“Kim, I don't know what that means.”

That's where we start.

Book a time with me here.