| The information in this article will help you | | | | contract, then you are not obligated to |
| understand what to expect when buying a home. | | | | purchase the home, and you will get your |
| We have put the information in a step-by-step | | | | earnest money back in full.(Time frame: as |
| format and have included a time frame for | | | | soon as the contract to purchase is written) |
| each step so that you can mark it in a | | | | |
| calendar. | | | | 6. Conduct a home inspection. Choosing a home |
| | | | inspector is optional. You do not have to |
| 1. Get pre-approved. Obtain pre-approval for | | | | conduct a home inspection. However, it is a |
| a home loan before beginning your home | | | | good idea to make sure that the home is |
| search. Before writing a contract on a home, | | | | structurally sound and that all major systems |
| you will need to get a letter of pre-approval | | | | in the home are running properly. (Time |
| from your lender specific to the home you are | | | | frame: within about 2 weeks of ratifying the |
| buying to attach to the purchasing contract. | | | | purchase contract) |
| This is free. (Time frame: before you begin | | | | |
| the home search) | | | | 7. Write a repair list. Getting the home |
| | | | repaired is optional. If the buyer is |
| 2. Choose a real estate agent. This is a free | | | | dissatisfied with the home inspection, the |
| service for buyers. Your agent will write the | | | | buyer's real estate agent will make a list of |
| contract for you and help you negotiate with | | | | items for the seller to repair. These items |
| the sellers. Your agent will also be able to | | | | will be negotiated in contract form between |
| give you recommendations on what lender, | | | | the buyer and the seller. (Time frame: within |
| attorney, insurance agent, and home inspector | | | | 48 hours of the last day for inspection, |
| to hire. Also, your agent will help you set | | | | which is specified in the purchase contract) |
| up appointments with the attorney, home | | | | |
| inspector, and any contractors you may need. | | | | 8. Get home insurance. Most homes will |
| (Time frame: approximately 1-2 months before | | | | require purchasing hazard insurance (fire and |
| move-in date) | | | | dwelling insurance). If the home is in a |
| | | | flood plain, flood insurance will also be |
| 3. Find a home and write a contract. It | | | | required. Some condos and townhomes collect |
| normally takes 30 to 45 days from the time | | | | the insurance through Home Owners Association |
| you find a home to close on it and move in. | | | | dues or Regime fees. Ask your real estate |
| When you find the home you want, you'll write | | | | agent or your insurance company what type of |
| a contract. If you have a real estate agent, | | | | insurance your home requires. (Time frame: at |
| he or she will write the contract for you and | | | | least 2 weeks before closing) |
| help you negotiate with the sellers. (Time | | | | |
| frame: approximately 30-45 days before | | | | 9. Make a final walk-thru. This walk-thru |
| move-in date) | | | | allows buyers to inspect any last minute |
| | | | repairs the seller has made to the property. |
| 4. Give earnest money. After the purchasing | | | | This walk-thru is the buyer's last chance |
| contract has been ratified (meaning both | | | | before closing to examine the condition of |
| parties have signed and agreed to the terms | | | | the property. (Time frame: a day before the |
| of the contract), you will write a check for | | | | closing, but sometimes the day of closing) |
| earnest money showing the seller you are | | | | |
| serious about purchasing. This money will be | | | | 10. Wire funds or get a certified check for |
| placed in an escrow account and will be | | | | the closing. About 24 hours before the |
| credited to the buyer at closing. The amount | | | | closing date, you will receive a call telling |
| of earnest money is determined by the buyer | | | | you how much money you will need to bring to |
| and the seller. There is no standard amount. | | | | the closing. You will then need to get a |
| (Time frame: within 48 hours of ratifying the | | | | certified check payable to the attorney's |
| purchase contract) | | | | office. If you are from out of town, you may |
| | | | need to wire funds to the attorney's office a |
| 5. Choose a lender. There are many different | | | | day or two before closing. In this case, ask |
| kinds of loans. Although you can get a 0% | | | | the attorney's office for wiring |
| down loan, it is good to shop around with 2 | | | | instructions. Bring your checkbook and |
| or 3 lenders to see what loans are available | | | | driver's license to the closing with you, |
| and to compare rates and closing costs. Make | | | | just in case. Total closing costs (lender's |
| sure to get a "good faith estimate" of | | | | fees, attorney's fees, title company's fees, |
| closing costs from the lender before | | | | and insurance, other closing costs) will be |
| committing to the loan. If you cannot get a | | | | approximately 3% of the purchase price of the |
| loan before the specified date on the | | | | home. (Time frame: approximately 24-48 hrs. |