BLOG: Ten Steps to Buying a Home

Buying a home is probably one of the biggest financial commitments people will make in their lives. Buying a home isn’t just a dollars and cents investment, it is an investment in your life. Here are some ideas for your consideration to facilitate your buying efforts:

Step ONE: Choose a Realtor
A Realtor can enhance your home buying process. Select an Agent you respect and trust, someone with strong knowledge and experience with the entire process, knowledge of the area, the ability to help you decide what’s best for you, and will represent your interests well. To find such an Agent, get referrals of names from friends & family, or call Realtors you’ve heard about or seen … and don’t be shy about asking for references.

Step TWO: Get Pre-Approved
Meet with a loan officer and get pre-approved for a loan. There are hundreds of loan programs available; a good loan officer will help you sort through them and identify the one that will best meet your needs. Be sure to get a pre-approval letter to increase your negotiating power.

Step THREE: Refine Your Focus
Detailing your housing needs, wants and budget will be helpful for both you and your Realtor. Ask your agent for "hot sheets" of available houses or on-line tools to help you narrow down your choices.

Step FOUR: View Properties
Start your search electronically (www.EdinaRealty.com is an awesome web-site and is the #1 sight of choice in the Twin Cities). When you find homes that meet your criteria (on paper or from viewing on-line), tour them in person, assessing how they meet your various needs and wants. Then decide which one is best for you.

Step FIVE: Make an Offer
You’ve found the right home for you. Meet with your Realtor to determine your offer strategy; understand what similar homes have sold for recently and how homes are selling in the area. Move quickly because you never know if someone else has eyes for the same house! Even in buyer markets, multiple offers occur.　 Have your agent and/or your loan officer provide you a "good faith estimate" or an "estimated Buyers expense sheet" to help you understand the financial aspect of your offer and purchasing the home.

Step SIX: Negotiate Terms
Counter-offers are common in real estate. Be prepared to be a little flexible on price, closing date, appliances and/or repairs. Understand YOUR big-picture (goals, life-style, etc.); i.e. what is the impact of $5,000 over 30 years in achieving your new home dream?

Step SEVEN: Get an Inspection
This is a great chance to have the property’s systems and structure evaluated by a professional, independent party. An experienced, outside professional is worth every penny. And you may want to add a home warranty to cover appliances and systems that could break down in your first year in your new home—providing more peace of mind.

Step EIGHT: Do a Walkthrough
Shortly before closing on your new home, do a final walkthrough of the house to make sure everything is as you last saw the house and per the terms of your purchase agreement.

Step NINE: Close
At the closing, you will review and sign the relevant closing papers. Then, after providing a cashier’s check or a certified check for the down payment and closing costs (verify with your Closer before closing what kind of check is preferred and the amount the check should be), the keys are passed to you and the house is now your new home!

Step TEN: Move In!!!
Use a checklist to plan your move so nothing is forgotten. Your Realtor® might be able to help provide you with a checklist to augment your efforts.

Happy Home Buying!