1. FIGURE OUT HOW MUCH HOUSE YOU CAN AFFORD.
- Calculate your monthly income and debt.
- Gather open account numbers and balances.
- Check your credit report and FICO score.
- Clear any big new purchases with your lender.
- Clear opening any new credit accounts with lender.
2. GET PRE-APPROVED FOR A MORTGAGE.
- Choose a type of mortgage.
- Speak to a good lender.
- Research for the best interest rates and programs.
3. DETERMINE WHAT YOU WANT AND NEED IN A HOME.
- Choose a location (downtown, urban, suburban, rural).
- Choose a type (single family, townhouse, condo or farm-ranch).
- Choose a price range.
- Choose a size.
- Choose an architectural style.
4. RESEARCH YOUR TARGET NEIGHBORHOODS.
- Look online for information on schools, crime rate, traffic and zoning.
- Determine your work commute.
- Scout local amenities, such as parks, shops and restaurants.
5. WORK WITH A BUYER’S AGENT WHO KNOWS THE NEIGHBORHOOD.
- Get referrals.
- Consider working with an exclusive buyer’s agent.
- Interview at least three agents.
- Look for experience and good chemistry.
6. SEARCH FOR HOMES IN THE MLS.
- Browse listings online
- Ask your agent to set up tours of homes that fit your criteria.
- Check local newspapers.
- Pick up flyers and attend open houses.
7. RESEARCH EACH HOME YOU WANT TO BUY.
- Ask your agent for comps to estimate the property’s fair market value.
- Ask the seller’s for average utilities.
- Review all property disclosures.
- Find out about liens, easements or other restrictions.
8. MAKE AN OFFER AND NEGOTIATE.
- Determine the purchase price.
- Include contingencies, such as financial, inspection or purchase.
- Spell out any special requests and repairs you want included in the sale.
- Find out about liens, easements or other restrictions.
- Determine an earnest money amount.
- Define a move-in date.
- Once both parties agree to the terms, sign the Purchase and Sale Agreement.
9. FINALIZE THE DEAL.
- Get the house appraised.
- Get a professional home inspection.
- Consider getting specific inspections for structural engineering, roof and termites.
- Use the appraisal and inspection reports to re-negotiate if necessary.
- Choose a home insurance company.
- Do a walk-through inspection prior to closing.
- Set aside cash for the closing costs and down payment.
10. CLOSE THE PURCHASE.
- Review the settlement document at least 2 days before closing to see how funds will be collected and distributed.
- Get a cashier’s check for the amount you need to bring to closing, including the down payment and closing costs.