Home Buying Checklist

1. Define Your Needs: The first step in the home buying process is to analyze your needs and purpose for purchasing a home. Will this be your primary residence for many years to come, or a shorter term stepping-stone? Purchasing a home is a large financial investment, which requires a good deal of research and preparation by you, your agent and your lender.
2. Get Pre-qualified or Pre-approved for a Loan: Understanding your financial situation is a critical step to home ownership. The loan qualification process helps you understand how much you can afford and how quickly you can purchase. A credit report and down payment funds, if any, must be verified to obtain pre-approval. Don’t be afraid to shop around. There are numerous lenders and loan programs out there, and this is the time to find the one that’s best for you.
3. Choose an Agent: It’s important to find an agent who will work well with you, and work hard for you. Good communication is essential. The home seller pays buyer’s agent fees, so the benefits of utilizing their services are worthwhile.
4. Find a House: There are several avenues to searching for homes. The internet is a great place to start, but internet listings aren’t always the most up to date. Although time consuming, driving around neighborhoods is a good way to familiarize yourself with areas and market values, especially if you are still trying to decide which areas are of interest to you. The most efficient way to search is to let your agent keep you abreast of available homes that meet your criteria, and then tour the homes in person at your convenience.
5. Negotiate an Offer: This is a good time to prioritize your wants and needs. Is price the main issue, or area and neighborhood? Bedrooms? Or Garage size? Each of these points have different importance to different people. Decide which items are most essential to you before your agent writes an offer on a home. It’s a good idea when writing an offer to decide how high you are willing to go before faced with the actual price decision so that emotion doesn’t take over in the negotiating process. Your agent will write all necessary paperwork and present your offer to the seller or seller’s agent.
6. Pre-closing Activity: Expect approximately 30 days to satisfy the contingencies in the contract and have your loan package completed before closing. During this period the appraisal will be done and you may conduct any inspections on the physical condition of the property. Your agent and lender will keep you informed of all important dates and timelines.
7. Settlement and Closing: Settlement occurs when all parties sign the paperwork necessary to transfer the title to you. It takes place at a title company of your choosing, and lasts about an hour. Closing is when your loan money is wired and the title is actually recorded in your name, which usually occurs twenty-four to forty-eight hours later.
8. Moving in—It’s all yours!: Get the keys and enjoy your new home.