1. Check your credit report:

It is important you review your credit report prior to beginning your home search. By reviewing your report, you will be able to identify any errors that need to be corrected early on. Your lender will be able to assess if you can qualify to obtain a loan by your credit score. If your credit score is too low to purchase a home, there are ways to repair your credit...

2. Meet with a lender and get pre-qualified:

Before beginning your home search, it is wise to get pre-qualified in order to know how much house you can afford. There is no sense in wasting your time looking at homes that you are not qualified to purchase. Besides, having a pre-approval will not only speed up the loan process when you find the house you want to purchase, but the seller will take your offer seriously.

3. Choose an agent:

When choosing a realtor, you want to ensure your needs are going to be met and that you feel comfortable working and communicating with your realtor. Some things to consider when choosing a realtor include their flexibility, education or experience level, personality, and ethical standards. Normally, as a buyer you are not required to pay your realtor’s commissions but there are some exceptions.

4. Home Search:

Before beginning your home search, make a list of must have’s and wants so your realtor has a clear understanding of what type of home you are looking for. When you go to look at homes with your realtor, rate each home you see on a level of 1-10 so you have a gauge to help you decide which homes you like best. Your realtor may choose to preview homes you are interested in first before taking you out to look at them. This helps eliminate the homes that do not meet your needs and can make the home search more efficient. Once you find the home you like, do some research about the neighborhood, area, and local schools.

5. Negotiations:

Your realtor will walk you through the negotiation process step by step by submitting a reasonable offer for the home, negotiating the purchase price and terms of the contract on your behalf, and ensuring all of the deadlines are met once you are under contract. Always make sure to have another home in mind as a backup in case the offer you place on your first choice falls through.

6. Important Documents:

Once you are under contract to purchase a home, there are many steps that take place before closing. The seller is required to provide the buyer with various documents before closing which include but are not limited to: Disclosures, Title Commitment, and Common Interest Community documents. It is essential to review each of these documents with your Realtor as they include important information about the home for the future homeowner.

7. Inspection:

There are many steps in the buying process and the inspection is a very important one. It is the buyer’s decision whether or not to choose to have an inspection completed (with exception of FHA/VA financing). Although you may save a couple hundred dollars by bypassing the inspection, you may be in over your head if there are repairs that need to be taken care of that you did not find after you purchase the home. Unless you have knowledge in the area of inspecting homes, I strongly suggest you hire a certified inspector to inspect the home you are going to buy. The inspection takes approximately one hour and the inspector looks at various areas of the home which includes operation of major appliances, the garage door, water leaks, window seals, the condition of the roof, furnace and air conditioning, water heater, foundation walls or damage to the structure of the home, the home exterior, skylights, switches and outlets, signs of mold, and gas leaks.

8. Appraisal:

Anytime you obtain financing for a home, the lender is going to require an appraisal be completed on the home to ensure the home is valued at the purchase price agreed in the contract. Depending on the loan you obtain, your appraisal may be FHA (Federal Housing Administration), VA (Veterans Administration), or Conventional. If the property appraises below the agreed contract purchase price, the lender cannot finance the loan for the buyer.

9. Insurance:

As a buyer, you will need to obtain property insurance soon after you are under contract to purchase a home. The lender will not loan you the money for the home without proof of homeowner’s insurance because if something happens to the home such as a fire, the mortgage needs to be covered. The lender will require a hazard insurance (insurance against fire and natural disasters) premium to be prepaid for the year at closing in addition to 2-3 months escrow of hazard insurance to serve as an additional safeguard.

10. Walkthrough:

One or two days before closing, your realtor will schedule a walk-through. The buyers walk through the home with their realtor and make sure the condition of the home is as agreed upon in the contract. Is the home clean? Are all of the included appliances and light fixtures or ceiling fans still in the home? Are there any items that are missing, broken, or left behind by the seller? The walk-through does not take very long and leaves the buyer assured of the home’s condition before closing. If there are any issues that arise out of the scheduled walk-through, your realtor will contact the listing agent.

11. Closing Day!

Closing Day! It takes approximately one month from the contract acceptance by all parties to close on the home. The listing agent usually designates the title company where the closing will take place. Title companies charge a fee for their service and it is usually no more than $200. As long as your realtor has received closing numbers within sufficient time, she will be able to review the HUD Settlement Statement with you before closing. On the day of closing, remember to bring the following: driver’s license or identification card, certified funds (the title company will not accept a personal check), and any other documentation that is required (i.e. Power of Attorney). If you are working that day allow at least one hour for the closing. Once all of the paperwork is signed, all parties receive originals of the closing documents for their records. When tax season arrives, make sure to have your CPA review the HUD Settlement Statement as you may be eligible for some tax deductions in regards to your closing costs.

12. Welcome to your new home!

Phone different moving companies or moving truck rental companies to make reservations and compare prices and services prior to your big move. Label the boxes that will need to be unpacked first when you move into your home. Protect your furniture from damage during the move by wrapping them with blankets or sheets and keep the drawers shut by wrapping the furniture with the plastic wrap at your local rental truck source. Pack the most necessary last into the moving truck so you can pull them out first.