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So, you are ready to go out and buy your home...EXCELLENT!!
HOWEVER!!
Before you even find your home, please UNDERSTAND THE PROCESS so that you're not overwhelmed by it when it happens!
FIRST and most importantly: GET PRE-APPROVED (not "pre-qualified")
Your bank, credit union, or a mortgage broker can process this in a matter of an hour. In today's market, sellers demand buyers who are pre-approved, as it poses less risk to them to take their house off the market. Listing Agents will want to know that you are using a reputable lender, so please ask me for referrals if you do not already have a good one.
SECOND and of EQUAL importance: FIND A REALTOR YOU LIKE AND STICK WITH HER/HIM.
You will find this saves you a lot of time and confusion by having one-person track and coordinate what you like, what you've seen, etc. Any one Realtor can show you any house listed in the MLS, regardless of who the Listing Company is. Also, with this loyalty in place, you'll find your Realtor will work much harder for you. Of course, signing a Buyer Agency Contract will guarantee that your Realtor is working for you, not in the best interest of the Seller.
THIRD: DO YOUR HOMEWORK.
There are several neighborhoods to consider buying in, but you must figure out what your priorities are in order to narrow things down (elimination is the name of the game!). Are you looking for a good commuting location? More concerned with the school system? Would rather have 'more house' than 'location'? Need to be near public transportation?
FOURTH: WRITE UP AN AGREEMENT OF SALE.
The paperwork includes:
· Agreement of Sale Form
· Inspection Contingency Addendum
· Mortgage Contingency Addendum
· Agency Disclosure Form
· Dual Agency Disclosure Form (if needed)
· Property Transfer Certification Notification Form (lead paint laws)
· Writing a check to the Listing Agency for $500.00-$1,000.00 as a deposit with the Offer (this check will not be cashed until if and when the Offer is accepted by both parties)
There may be other forms to sign.
Once the Agreement of Sale is Accepted, you and the Seller have to initial any changes made to the original Offer you signed.
FIFTH: THE HOME INSPECTION.
You have the right to use any service provider that you wish. However, unless they have been personally recommended, please ask me for my recommended inspectors, as they have a proven track record and are accountable to me.
You have 12-15 days (from date of Offer Accepted) to have the property INSPECTED.
You are entitled to have as many inspections as you wish, as long as it is done within the 12-15 days. Most buyers use one Home Inspector to do a general inspection of everything in the house. But if we have reason to believe that there is serious pest infestation, it may be wise to also hire an exterminator to examine the house. Also, if your brother is an electrician or your uncle is a roofer, feel free to bring them along to work beside the pros.
I always encourage people to do inspections as soon as possible, even if it means taking a half day off from work. It's best to know as soon as possible if problems or issues arise, so that we have time to possibly re-negotiate with the Seller. Both you and the Seller want to know if the deal is going to go forward or not has soon as possible -- it helps everyone sleep better!
FIFTH: OBTAIN FINAL MORTGAGE COMMITMENT.
Once your offer has been accepted, you will need to contact your mortgage lender. They will need a copy of The Agreement of Sale along with any addendums that might affect your loan. Within about 2-3 weeks they will issue you a "Final Commitment Letter", which confirms, the bank that your financing is fully approved (usually subject to minor conditions). Be sure you are able to meet all conditions by closing date (or other dates indicated).
SIXTH: NOTIFY UTILITY COMPANIES AND GET READY TO PACK!
Prior to closing you will need to contact utility companies (electric/gas/phone) to transfer these into your name as of the day of closing. Water bills automatically get changed into your name when the Seller pays off their final bill. If the house has oil, you may wish to continue using the company which services the Seller, as they are familiar with their system, but you are welcome to chose any oil company you wish. When you fill out 'change of address' cards for your mail, be sure to drop them at the post office where you currently receive your mail! Moving arrangements are all yours!
SEVENTH: CLOSING DAY!!
Within 24 hours before the closing, you are entitled to a Final Walk-Through of the property to ensure it is in the same condition as when you contracted to buy it. If any major problems are found, it could delay closing, or monies could be set aside at closing to cover problems.
BE SURE TO BRING THE FOLLOWING TO CLOSING:
1. A CERTIFIED CHECK or BANK CHECK payable to THE TITLE COMPANY for any additional monies you are putting down at closing, which may also include bank closing costs.
2. Your DRIVER'S LICENSE or other picture identification (Passport, etc.).
3. Your CHECKBOOK to pay for any adjustments for fuel (oil or propane) or personal property to Seller.
4. An INSURANCE BINDER on the property written for at least the amount of the mortgage and accurately naming the lending institution as first mortgage. This means you will pre-pay for one full year of homeowner's insurance. Thereafter, each mortgage payment will include escrow money toward your next year's insurance bill. | 
