A Real Estate Agent's Quick Reference Guide To Buying a Home

Buying A Home? Congratulations! There are many steps involved in the home buying process. If you are a first time home buyer, and even a repeat buyer there is a lot to remember and manage as you wade your way through. Use this tip sheet as a Quick Reference Guide To Buying a Home as you work with your real estate agent. For more explanation about these steps go to The Steps To Buying A Home.

1. Compare the pros and cons of renting and buying.
   
   - Use a Rent vs. Buy Calculator to compare the costs of renting and buying.



2. Get Pre-Qualified For A Mortgage
   
   - Calculate your monthly income and debt.
   - Check your credit report and FICO score.
   - Use a mortgage calculator.
   - Determine your down payment.



3. Get pre-approved for a mortgage.
   
   - Choose a type of mortgage.
   - Speak to at least three lenders or mortgage brokers.
   - Shop for the best interest rates and programs.
- Get a pre-approval letter from lender to give to your real estate agent


4. Determine what you want and need in a home.
   
   - Choose a location (downtown, urban, suburban, or rural).
   - Choose a type (single family, townhouse, condo, or loft).
   - Choose a price range.
   - Choose a size.
   - Choose an architectural style.



5. Research your target area (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.



6. Work with a buyer's agent who knows the neighborhood.
   
   - Get referrals from friends, co-workers, etc.
   - Consider working with an exclusive buyer's agent.
   - Interview at least three agents.
   - Look for experience and good chemistry.



7. Search for homes in the MLS and For Sale by Owner (FSBO).
   
   - Check listings online like PropertyNut.com, Zillow.com and Trulia.com.
   - Ask your agent to set up tours of homes that fit your criteria.
   - Check local newspapers.
   - Pick up flyers and attend open houses.



8. Research each home you may want to buy.
   
   - Ask your agent for comps to estimate the property’s fair market value.
   - Ask the seller the reason for selling.
   - Review all property disclosures.
   - Find out about liens, easements or other restrictions.



9. 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.
   - Determine an earnest money amount.
   - Define a move-in date.
   - Once both parties agree to the terms, sign the Purchase and Sale Agreement.



10. 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.
    - Complete the loan process with the lender.
    - Do a walk-through inspection prior to closing.
    - Set aside cash for the closing costs and down payment.



11. 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.

Buying a home is supposed to be fun and exciting. It is also one of the biggest investments you can make. The better prepared you are to buy a home, the less stress you will have during the transaction. Do as much as you can upfront, that way you can just focus on finding your dream home and enjoy the process. Keep this Quick Reference Home Buying Guide handy while buying a home.