Preparing to buy a home. 

You're Only 11 Steps Away From Buying a Home
 

A Step By Step Look at Home Buying
     The specific way you progress through a home buying
transaction varies depending on the real estate laws and customs where you live,
but there are many home buying steps that are standard, even though they might
not be accomplished in the same order in every location.
     You'll feel more confident about your home buying
journey when you understand what is required of you and every other person who
is involved in the transaction. This guide takes you through it, and shows you
that you're only 11 steps away from buying a home.

Step 1 - Get Your Finances in Order
     Your credit reports are an ongoing look at how you
manage your finances. You must know exactly what your credit reports say about
your financial history before you apply for a mortgage, because the reports play
an important role in the mortgage approval process and in determining the
interest rate and other loan terms that a lender offers you.
     If you haven't looked at your credit reports, you might
be surprised at their contents, because errors are common.

Step 2 - Get Familiar with the Mortgage Industry

Step 3 - Get Pre-Approved for a Mortgage
     Do you know how much house you can afford? Probably
not, unless you've talked with a lender.
Pre-approval helps you in other ways. Consider this scenario. A home seller gets
two similar offers. One is accompanied by a letter from the buyer's bank that
states she is pre-approved for a mortgage in the amount of the offer. The other
has no supporting documents. Which offer do you think the seller will consider
first?

Step 4 - Determine Your Wants and Needs
     Buying a home isn't as difficult as you might think,
even if you're short on funds, but the process will go a lot smoother if you get
familiar with your real estate market and narrow down your wants and needs
before you start looking at houses.

Step 5 - Learn to Work with Real Estate Agents
     Real estate agents represent buyers, sellers, or
both--and in some states they can work as neutral facilitators for either party.
It's essential to understand agent duties and loyalties before you make that
first phone call.

Step 6 - Start Searching for a Home
     Your agent will give you multiple listing sheets to
study. I'm sure you'll also pick up House For Sale magazines and read classified
ads in your local newspapers. You'll probably spend time surfing the Internet
for homes. You might even plan afternoon drives to preview neighborhoods. Those
are all excellent ways to see what's available. Here are some tools to help you
narrow your home buying search.

Step 7 - Handle Pre-Offer Tasks
     Deciding whether or not you want to buy a house
involves a look at its structure and its features, but there are many other
topics that are every bit as important to your purchase.

Step 8 - Make an Offer
     There's no one set of instructions that can cover all
the differences in real estate laws and customs that exist throughout the United
States, so the mechanics of making an offer and its specific contingencies
depend greatly on your location. However, there are some home buying tips that
can help you fine-tune your offer, no matter where you live.

Step 9 - Home Inspections and Other Tests
     In some states, home inspections are accomplished
before the final purchase contract is signed. In other states, inspections take
place after an offer is finalized. No matter when you do them, it's critical to
decide which inspections and tests you want to perform.
     Talk with your real estate agent or other advisor to
find out when inspections should be handled and if additional types of testing
are important for your specific area.

Step 10 - Avoiding and Correcting Last Minute Problems
     As your closing date nears, everyone involved in your
real estate transaction should check its progress on a daily basis, because
staying on top of things means you'll know immediately if there's a problem that
must be dealt with. Here's a bit of information that focuses on a few common
problems that home buyers must deal with before they close on a house.

Step 11 - You're on the Way to Closing
     Most of your home buying problems are behind you now
and you're on your way to closing, also called settlement, the event that
transfers ownership of the property to you. Just a few more things to learn, a
few more things to do, and you're there!

Closing Thoughts
     The steps outlined in this article are a general home
buying guide. You will encounter issues specific to your location and your
transaction, issues that can best be explained and handled by your local real
estate agent, your lender, your attorney, your closing agent, or others who are
helping you complete the home buying transaction.
     Never hesitate to ask questions. Ask as many questions
as necessary to help you understand the entire home buying process. You are
making a long term commitment and spending a major amount of money--you'll feel
much better about the transaction if you stay informed and understand what's
happening every step along the way.