| 1. Shop around for lenders who can provide | | | | accepted by the seller outright. Maybe you've |
| quality loans with good terms. Take every aspect | | | | been outbid by another potential buyer or the |
| of the lender into consideration. Keep in mind | | | | seller is not willing to concede to all of your |
| things like the reputation of the lender, interest | | | | demands. Be assertive, but be wise; you will most |
| rates offered, length of the loan, the type of loan | | | | likely not be dealing with the seller directly in cases |
| you want (fixed or adjustable), whether you'll | | | | where both you and they have an agent, so |
| have to pay points, and whether pre-payment is | | | | make your agent fully aware of where you're |
| an option. Look at loan fees and ask for terms of | | | | coming from at all times. Know when to stay and |
| the loans offered by each lender in writing. | | | | when to walk away; it's okay to fold 'em if things |
| 2. Get pre-approved for a loan, not just | | | | just aren't going your way. This is not the only |
| pre-qualified. Getting to the next step in the home | | | | house out there! |
| buying process with a pre-qualification is like | | | | 8. Coordinate your tasks once you have an |
| bringing a knife to a gun fight. Pre-qualification is at | | | | accepted offer and a ratified contract. There will |
| most a verbal agreement that you generally | | | | be many things to take care of, including the |
| appear to be a good candidate for a loan. | | | | home inspection, taking out a homeowners' |
| Pre-approval requires a much more in-depth | | | | insurance policy, land surveying (if applicable), |
| review of your finances, and results in a lender | | | | getting the home appraised, choosing a title |
| letter that shows the amount you can borrow. | | | | company, and going over your costs with your |
| This letter is just about the only thing that will get | | | | loan officer. Some of these will be taken care of |
| the attention of a buyer's real estate agent when | | | | by your agent or your loan officer, and often |
| you approach them. | | | | they will each have resources in the requisite |
| 3. Hire a buyer's agent and put them to work for | | | | businesses to help you get things moving. |
| you. Remember, it's free! You don't pay a cent to | | | | 9. Deal with the results of the inspection and the |
| the buyer's agent because they are working off | | | | appraisal as necessary. If problems turn up when |
| commission from the sales prices of the home | | | | the inspection takes place, you may be able to |
| you buy. So essentially, the person you buy your | | | | re-negotiate some of the contract terms with the |
| home from pays both their agent and yours! | | | | seller. Likewise, if the home does not appraise for |
| 4. Make a wishlist of your criteria for a home. | | | | the full asking price, the seller may be willing to |
| Write down everything that comes to mind; your | | | | make concessions in order to get the home sold. |
| wants, needs, and "nice-to-haves" are all good | | | | Be aware that in most cases a lender will only |
| starting points to work from. Think about the | | | | provide as much money as the home is appraised |
| number of rooms you'd like, square footage, | | | | to be worth, so in instances where the sales price |
| whether you want a yard - big, small, or none - | | | | is above the appraisal amount you may need to |
| and the location, neighborhood, and any nearby | | | | come up with the difference! |
| amenities or features that would make living there | | | | 10. Know your costs before you get to the |
| convenient and enjoyable for you. | | | | closing table. By the time the closing date arrives, |
| 5. Start searching for homes after you've gone | | | | you should have received a clear picture from |
| over your big list with your agent and find out | | | | your loan officer of your approximate costs, and |
| what kinds of property exists in your price range. | | | | a form called a HUD-1 that itemizes them and lists |
| 6. Make an offer on the house that's right for you | | | | them out exactly so you know how much to |
| - something only you can really decide - and | | | | bring to the table. Closing will consist of you and |
| make sure that your contract and your offer are | | | | the seller each signing several forms; this time, |
| sound and that they resonate well in the current | | | | the title attorney will review each form with you. |
| market. Your agent can provide recent sales data | | | | Be ready to sign your name and initial dozens of |
| to help you in this endeavor, and will explain each | | | | sheets of paper. Then get the keys and enjoy |
| page of the contract as you go over it together. | | | | your new home! |
| 7. Negotiate a deal if your original contract is not | | | | |