Buying a home

Seven steps to get you ready

Congratulations on your decision to purchase a new home! To make the process easier, follow these steps:

1. Get your finances in order.  Check your credit report to see how you score, and to make sure there are no issues.  Talk with a mortgage broker to see how much house you can afford.  Go ahead and get preapproved for the loan amount in your price range.  That way, sellers will know you are serious, and there won't be any surprises in final loan approval.
   
2. Define your wants and needs.  Put together a wish list. Share this list with your real estate agent. Prioritize which items are most important, so your agent can operate with some flexibility when scouting for homes on your behalf.
3. Let the house hunting begin!  Your real estate agent can do the initial scouting for you. He will alert you of new and existing listings that have strong potential. If these listings pique your interest, your agent will arrange home tours at your convenience.   You also can do some research on your own, using local real estate publications, the Internet, and just driving around your favorite neighborhoods.
4. Make an offer.  When you've found the house that you love, your real estate agent will help you negotiate the offer price by reviewing recent sales of similar homes in the area. With your input, your agent will draft an offer to purchase.  If the seller accepts the offer, the document becomes a binding agreement, so it is very important that you carefully review it with your agent and speak up if anything is not clear to you. If the seller changes any aspect of the offer, it is not a binding agreement until the buyer agrees to the seller's changes.
5. Let's make a deal!  Sometimes the seller accepts your offer just as it is.  However, most of the time, the seller counters your offer.  Keep in mind that many items are negotiable when buying a house, including price, move-in date, closing costs, personal items (furniture, appliances, window treatments), and repairs.  Again, keep the focus on what's really important to you.  Negotiating involves compromise and mutual respect.  Read about what's "normally" included in a sale.
6. Get ready to close.  Once an offer is accepted, it becomes a binding contract.  There is a checklist of tasks to be completed by the buyer, the seller, and the real estate agent.  Many of these tasks have strict deadlines (accompanied by the phrase "Time is of the essense" in your purchase contract.)  Your real estate agent will help keep you on schedule!  Typically the buyer is responsible for the following:
   1. Get an appraisal and finalize your financing.
   2. Schedule ahome inspection.
   3. Have the closing attorney secure title insurance.
   4. Shop for a home warranty.
7. Close the deal.  The closing is where ownership of the home is legally transferred from the seller to you!  Generally, this takes place in a lawyer's office, where the closing officer coordinates all of the document signing, collection and disbursement of funds.  A day or two before closing, the final "HUD" statement should be available to you, outlining final costs and details of disbursements.  Your real estate agent will review this with you prior to closing.  Congratulations on your new home!