| 1. Decide what kind of home are you looking for. To | | | | 4. Bid on a home. When you have decided on a |
| help your realtor and facilitate your search, it is best | | | | home, it is time to make an offer. Your realtor can |
| to have an idea of what kind of home you are | | | | provide you with information concerning the sale |
| seeking. What kind of neighborhood do you have in | | | | price of similar homes that have recently been on the |
| mind? Do you have a preference for new | | | | market and together you can decide on an |
| construction versus something older? What style of | | | | appropriate amount to bid. You will also work with |
| home appeals to you? What size and layout? Do you | | | | your realtor to come up with a list of requirements, if |
| want a fixer upper, or something in move-in | | | | any, for the sale to go through. There are many |
| condition? It is also helpful to come up with a list of | | | | things that are negotiable when buying a home. Price |
| items that are negotiable and a list of items that are | | | | is an obvious example, but other variables might |
| non-negotiable. | | | | include financing, closing date, repairs, items that are |
| 2. Get your finances in order. Once you decide what | | | | included in the sale (such as appliances), closing costs, |
| kind of home you are looking for, you have to figure | | | | and so on. You realtor will draft a contract and if the |
| out how much you can afford. To do this, have a | | | | seller accepts it, you have a legally binding document! |
| mortgage broker preapprove or prequalify you for a | | | | An offer should generally be contingent on an |
| loan. If you do not have a mortgage broker, your | | | | inspection and an evaluation of the results. This way, |
| realtor will probably be able to refer you to one. | | | | if an inspection reveals a major problem, you can |
| However, you should feel free to shop around. | | | | reconsider and if necessary, renegotiate your offer. |
| In addition to helping you figure out your price range, | | | | If you are lucky, the seller will accept your first offer, |
| this step will often give you an advantage when you | | | | but often he or she will respond with a counter |
| find a home you want to bid on. It will signify to the | | | | offer, which you can then respond to in turn until |
| seller that you have gone through a credit check and | | | | eventually (hopefully), you both agree on a deal. |
| that a lender is willing to work with you. If a seller | | | | 5. Take care of your responsibilities as a buyer. In |
| receives to identical offers, one from a buyer who is | | | | preparation for the closing, there are several steps |
| preapproved and one from a buyer who is not, | | | | that you, as the buyer, must complete in a timely |
| chances are he or she will prefer to work with the | | | | and responsible fashion. Generally, you will need to |
| preapproved individual. | | | | arrange for a home inspection for your potential real |
| To avoid getting turned down for a loan, and to get | | | | estate purchase, finalize your financing, have the |
| the best interest rate possible, it is a good idea to | | | | home appraised, purchase title insurance, and |
| know what your credit report says, and take steps | | | | purchase home owners insurance. Once again, your |
| to fix any problems, before you approach your | | | | realtor will probably be able to make referrals and |
| mortgage broker. | | | | assist you with these steps. |
| 3. Find a home! Using your wish list as a guide (see | | | | 6. The closing. The closing is when ownership of the |
| Step 1), you realtor can do some initial investigating | | | | home is legally transferred from the seller to the |
| and provide you with list of potential properties to | | | | buyer. All involved parties sometimes attend the |
| review. Together, you can visit the top contenders. | | | | closing. There are also circumstances under which a |
| Your realtor can also alert you to new listings that | | | | party might be absent, such as when the seller lives |
| meet your criteria by email, phone, or fax. You can | | | | out of town, and circumstances under which the |
| also search listings by yourself using a tool such as | | | | buyer and seller might be in different rooms. At the |
| our *on-line search*. Reading local classified ads and | | | | closing a series of documents will be signed and funds |
| real estate magazines and driving or walking through | | | | will be dispersed. Just prior to the closing date you will |
| your favorite neighborhoods can also yield promising | | | | be provided with a financial statement outlining the |
| leads. If you find a property that piques your | | | | exact amount of money you owe. This money, along |
| interest, just alert your realtor and he or she can | | | | with any other necessary documents, should be |
| arrange a visit. As you view different homes, let your | | | | brought to the closing. |
| realtor know what you like and what you dislike, so | | | | 7. Get the keys. Congratulations! The home is now |
| he or she can find better possibilities in the future. | | | | yours! |