STEP 1: Establish your price range. Know what you can afford and stay within that range. If
you aren't sure what that is, ask a mortgage loan lender to pre-qualify you. Also, there are several
types of loan options available to you such as special first time buyers programs and others.
Mortgage rates and options vary from one lending institution to another.
STEP 2: Where do you want to locate? Select the area and begin to call on homes for sale within
that area that are within your price range. Set appointments to see the property. If for some
reason you are unable to keep your appointment, ALWAYS call to cancel the showing.
STEP 3: When you find the perfect home, (within your price range) the first step will be to tell
the seller that you would like to make a written offer on the home. Be sure you include everything
in your offer that you expect to remain with the property, i.e. drapes, appliances, etc. The closing
date is another important consideration along with the terms of the contract. If the seller is not in
total agreement with everything you have offered, he will make a "counter offer", which allows the
negotiations to continue. If this is truly the perfect home for you and the seller wants to sell the
property, you should be able to come to an agreement that works for both parties.
STEP 4: Some things you will want to make sure you have covered in your agreement are; a) any
requirements such as passing an inspection to be sure that all aspects of the house are functioning
and in working order, b) that your deposit will be returned within a specific time frame if you do
not qualify for the loan necessary to purchase the property. You might feel more comfortable if
you have a lawyer review the Purchase and Sale Agreement before you sign.
STEP 5: When an acceptable agreement is reached on the price, as well as the terms, you will
need to give the seller a deposit. This is called an "earnest" deposit or "binder" and lets the seller
know that you are serious and negotiating in good faith. The amount of the deposit is determined
by the price of the property and how much the seller is willing to accept. This deposit will go into
an escrow account until the final settlement is made at closing.
STEP 6: Begin the loan process. If you are still shopping for a mortgage lender, check the local
banks and mortgage companies for current rates, as well as any special programs available to you.
STEP 7: When the loan is approved, notify the seller at once. Make any necessary adjustments to
closing and possession dates.
STEP 8: An appointment will be set for your closing, where you will sign all documents and
finalize the purchase. The keys to your new property will be turned over to you at this time.
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