The Complete Guide to the Home Buying Process in Howard County, IN
Whether you are relocating to Kokomo to work at one of our thriving local industries or you are a long-time Encompass Credit Union member looking to upgrade to your dream home in Greentown, the path to homeownership can feel complex.
The housing market in Howard County, Indiana, is unique. It’s competitive, fast-moving, and full of hidden gems. To help you navigate it, we’ve broken down the home-buying process into six actionable steps. This guide is designed to help you move from "just looking" to "welcome home" with confidence.
Step 1: Get Pre-Approved (Before You Scroll)
It is tempting to start by browsing listings online, but in a seller's market like ours, that can lead to heartbreak. The first true step in the home-buying process is determining your budget.
For Our Members: You already know that as a not-for-profit cooperative, Encompass Credit Union often offers lower rates and fewer fees than big banks. Getting pre-approved with us puts the power of a local, trusted financial partner behind your offer.
For Future Members: If you live or work in Howard, Tipton, or Clinton County, you are eligible to join us. A pre-approval letter does more than just tell you what you can afford; it tells sellers you are a serious buyer who has already done the financial heavy lifting.
Action Item: Use our Mortgage Calculators to estimate your monthly payments and see how different interest rates affect your purchasing power.
Step 2: Navigate the Howard County Market
Once you have your pre-approval, it’s time to hunt. Howard County offers a diverse range of living experiences, from the historic charm of downtown Kokomo to the quiet, open spaces of Russiaville.
Local Insight: Inventory has been tight in our area recently. In competitive neighborhoods, homes can go pending in under 30 days.
Pro Tip: Don't just look at the list price. Check the property taxes. In Indiana, property tax caps are distinct (capped at 1% of assessed value for homesteads), but local rates vary between townships (e.g., Taylor Township vs. Center Township).
Step 3: Make a Strong Offer
When you find "the one," your real estate agent will help you draft a purchase agreement. This is where having a local lender like Encompass matters. Listing agents in Howard County know us; they know our closings are reliable, which can make your offer stand out against others backed by impersonal online lenders.
Understanding Earnest Money: In Indiana, it is customary to submit an "earnest money" deposit along with your offer—typically 1% to 3% of the purchase price. This acts as a good-faith deposit showing the seller you are committed.
Step 4: The Inspection Phase
Never skip the inspection. Even a home that looks perfect on the surface can hide issues. In Central Indiana, there are a few specific things you should look out for:
Radon: It is common in the Midwest. Ask for a radon test.
Pests: Termite inspections are a standard requirement for many loans.
Sewer Lines: For older homes in Kokomo, a sewer scope can save you thousands in future repairs.
Step 5: Finalizing Your Mortgage
Once your offer is accepted and inspections are cleared, your loan goes into "underwriting." This is where we verify your documents to issue a final approval.
At Encompass, we offer a variety of Mortgage products to fit your specific life stage:
Fixed-Rate Mortgages: Perfect for members who plan to stay in their home for decades and want a consistent payment.
Adjustable-Rate Mortgages (ARMs): A strategic option if you plan to move again in a few years or want a lower initial rate.
Check our current Rates & Fees to see which option aligns with your financial goals.
Step 6: Closing Day and the "Good Funds" Law
You made it! Closing day is when you sign the paperwork and get the keys. However, there is one crucial Indiana law you need to know to avoid delays.
The "Good Funds" Rule: In Indiana, if you need to bring more than $10,000 to the closing table (for your down payment and closing costs), the law requires these funds to be wired. Personal checks or cashier's checks are generally not accepted for amounts over $10k.
Encompass Member Benefit: Because we are local, we can help you arrange this wire transfer smoothly so you aren't stressed on your big day.
Ready to Start Your Journey?
Buying a home is one of the biggest financial decisions you will ever make, but you don't have to make it alone. At Encompass Credit Union, we are community-minded—just like you. We are here to guide you through every step of the home-buying process in Howard County.