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Obtain your
credit report. Check it for accuracy and
correct any errors. |
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After
evaluating your credit report, determine
how much house you can afford to buy. Use
our mortgage calculator to figure out this
amount. |
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Shop around
for a good mortgage rate and reputable
lender. |
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Consider the
option of going to that respected lender
and getting a pre-qualification loan
certificate. Documents necessary for this
are the same documents needed for the loan
itself; see our Loan
Application Documents Checklist. |
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Once you
have the pre-qualification loan
certificate, you can visit as many real
estate offices as you like without being
tied down to a contract. This also gives
you greater negotiation power. |
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If you
choose to select an agent, find one that
you are comfortable with and ask for
references. Select
a real estate agent in the area in
which you plan to move. |
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Never agree
to buy a home without a detailed
inspection by a Professional Engineer
(P.E.). Home inspectors are not licensed,
so if you go with a home inspector instead
of a P.E. make sure they are part of an
Inspectors Association. Make sure you also
get a separate termite and roof
inspection. Ensure that your home sales
contract makes the sale contingent upon a
satisfactory termite inspection. |
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Always offer
less than the asking price and expect to
negotiate. Have your agent determine the
true value of the home. |
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When price
is established, an escrow is opened.
Special instructions on your part must be
included with this document at this point
or they will not count. These instructions
should include repairs and any damages as
identified by the P.E., roof and termite
inspectors. |
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Insist that
the seller buys a homeowners warranty -
make sure this is noted in the sales
contract (binder). |
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Ensure your
offer contains the language that the
"sale is contingent upon the buyer
being able to obtain financing". If
you are also trying to sell your current
home, ensure the binder states
"purchase is contingent upon the sale
of (your) first home". |
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Make sure
your binder specifies your desired move-in
date. |
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Before you
sign the binder and ensure it with your
earnest money, make sure your agent goes
over each section with you. Get a receipt
for your money. |
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If your real
estate agent's offer on the home is
accepted, your earnest money will be held
by the Title Company until closing. |
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Complete
your mortgage loan process, which should
be quick if you obtained a
pre-qualification loan certificate. |
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Determine
your homeowners insurance company. This is
required by the lender. Find
Homeowners Insurance Companies.
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Expect the
Title Company to draw up papers for the closing
and prepare an accounting of all funds on
the closing statement. |
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Enjoy your
new home! |
