Contact Us

Steps In The
Home Buying Process

We provide detailed information about each step elsewhere in our website at, "House-Buying-Guide".






We've also prepared a "pdf" document "Steps In The Home Buying Process" containing this outline so you can print it out and use it as a checklist as you proceed with your home buying adventure.

Steps In The Home Buying Process:

• Understand Why This Should be Your First Step

• Understand Customer vs. Client Level Service

• Understand the Negative Impact of Dual and Designated Agency (Caution is Advised)

• Know the Questions to Ask Prospective Agents

• Hiring an “Exclusive” Buyer’s Agent is Best

STEP 2: Determine Your Credit Status and Ability to Buy.

• Obtain Credit Reports from all 3 Credit Reporting Agencies - Experian, Equifax, and Trans Union

• Review and Correct Errors -
  • DIY - Do It Yourself Credit Repair

  • Hire a Credit Repair Organization

  • Hire a Credit Repair Specialist Attorney

• Determine the Best Home Financing Method based on Credit Status:
  • Credit Score 720+ - Get best rates, lowest down payments, easiest qualifying

  • Credit Score 640 to 720, try to increase score - every point counts - higher rates, down payment and harder qualifying

  • Credit Score <640 - Wait - Work on Credit - Save up money - pay off debts

STEP 3: Determine the Price Range You Can Afford Given Your Resources.

Meet with a mortgage professional to determine:

• Cash Needed for Down Payment

• Cash Needed for Closing Costs

• Need for Seller Concessions to Help With Closing Costs

• Review Other Mortgage Considerations and Options:
  • Income/Debt Ratios

  • Loan to Value (LTV)

  • Escrow for Taxes and Insurance

  • Mortgage Type: Conventional (conforming), Conventional (non-conforming), Government: FHA or VA, Other

STEP 4: Determine Your Needs and Wants.

• Neighborhood and Location

• Home Features

• Needs vs Wants

• Sort by: Absolute Musts, Nice to Have, Doesn’t Matter

STEP 5: The Home Search.

• Sources of Homes For Sale:
  • MLS (Multiple Listing Service)

  • Word of Mouth

  • “For Sale” Signs

  • Ads in Local Newspapers, Home Magazines, and Pennysavers

  • For Sale “By Owner”

  • Specialty Discount Brokers - Assist-To-Sell, Help-U-Sell

  • Open Houses

• Conduct Drive-bys (Check out the Neighborhood & Curb Appeal)

• Have Agent Set-up Showings

• Initial Inspection Used to Eliminate Prospective Homes

• Re-Inspection for Those That Make Your “Short List”

• See Enough Homes to Develop a Comfort Level (Gut Feel) for the Market

STEP 6: The Purchase Offer.

• Determine the Value Range of Comparable Properties (CMA)

• Review Property Condition Considerations (Repairs That are Needed)

• Determine Negotiating Strategy, Price and Other Terms to Offer:
  • Value Range of Similar Properties

  • Seller’s Motivation for selling

  • Seller’s Purchase Price and Improvements

  • Length of Time the Seller Has Owned the Property

  • Length of Time the Property has been on the Market

  • Repairs to be done by Seller or by You

  • Closing Costs to be paid by Seller - "Seller Concessions"

  • Are There Other Competing Offers

• Write Offer:
  • Subject to Attorney’s Approval

  • Subject to Obtaining Financing

  • Subject to Property Inspections

  • Subject to Receipt of Seller Property Condition Disclosure

  • Subject to Bank Appraisal Being Equal To or Greater Than the Purchase Price

• Present and Negotiate Offer

• Under Contract or Continue Your Search

• Attorney’s Approval

• Property Condition Disclosures

• Property Inspections - Repair Requests, if applicable

• Mortgage Approval and Mortgage Commitment Contingencies

• Good and Marketable Title

STEP 8: Closing (Also known as Settlement or Transfer).

• Phase One - After Contingencies are Rmoved:
  • Give Notice to Current Landlord

  • Start Planning Your Move (People and Equipment)

  • Get Fire/Liability Insurance Binder and One Year Paid Receipt to the Closing Agent/Attorney

• Phase Two - After a Firm Closing Date is Agreed to:
  • Call Utilities - Gas, Electric, Water, Sewer, Telephone, Cable, Internet Access, Fuel Oil, Propane, Refuse/Garbage Pickup

  • Finalize Your Moving Plans

  • Re-inspect the Property 24 to 48 Hours Before Closing

  • Contact Your Attorney or the Closing Agent for Instructions

  • Arrange for keys to be at closing

• Phase Three - At Closing:
  • Bring Cashiers Check

  • Bring Original Insurance Binder/Policy & One Year Paid Receipt

  • Bring Mortgage Commitment Papers

  • Bring Photo ID (Driver’s Lic./Passport) for Identification

  • Be Prepared to Sign Lots of Documents

  • Get Keys to the Property and Copies of Closing Documents

• Phase Four - After the Closing:
  • Check on Your New Home Immediately After the Closing to Make Sure It is O.K.

  • Change the Locks on Your New Home at Your Earliest Convenience

  • Follow-up with Utilities

  • Finalize Your Move and Previous Rental Arrangement

  • Move-in and Enjoy

CONGRATULATIONS......YOU MADE IT!

For example, having the right agent on your side very early in the process, rather than later after you have found a home, will benefit you greatly. Good buyer agents have a "team" ready to support your effort to buy the right home at the right price without sales pressure. They will have the right attorney, mortgage professional, home inspectors, and others to make your home buying adventure enjoyable and profitable.

Checking your credit and getting pre-approved for a mortgage early in the process is also a good idea. You don't want to fall in love with a home only to be disappointed that you can't buy it because you can't qualify for the mortgage due to some credit issue or it being out of your price range.

Follow the steps in the home buying process and you won't be disappointed with the result. We wish you well with your adventure and welcome your comments and questions. Help us make this the number one web site for home buying information. Thank you.

Click her to return from the "Steps In The Home Buying Process" page to the "Home Buying Guide" page.

Click here to return from the "Steps In The Home Buying Process" page to the "Home Buying Tips" page.