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A HOME BUYER'S SCHEDULE

The main steps in home buying are covered here. After you have studied the home-buying process, use this checklist to make sure you have done everything needed to buy the home of your dreams.

Step 1:

Before You Make an Offer...

• Get your credit reports from all three national credit bureaus, and clear them up, if necessary.
• Prequalify for a loan with one or more mortgage loan officers.
• List the characteristics you want in a neighborhood and home.
• Ask friends and family to recommend real estate agents and mortgage loan companies they've liked.

Step 2:

Make an Offer They Can't Refuse

• Look at homes to familiarize yourself with home values and neighborhood characteristics.
• Shop for loans by talking with several loan officers.
• Get a good faith estimate from each loan officer you interview.
• Gather your financial records so a lender can start the loan approval process.
• Interview several real estate agents before you contract to work with one (if you plan to do so).
• Zero in on the type of home you want (rambler, split level, Tudor, newly built).
• Check the value of homes like the one you want to bid on.
• Fill out a purchase agreement, and possibly hire an attorney to look it over. Remember, this is a legally binding document! Add contingencies, if necessary.
• Pay earnest money (part of your down payment).

Step 3:

Your Offer is Accepted

• Apply for a loan. Get a disclosure form. If your loan is approved, a lender will send you a commitment letter explaining the terms of the loan or contact you by phone.
• If you have an inspection contingency, hire an inspector or contractor to examine the condition of the home you want to buy. Do it yourself, if you know a lot about construction.
• If repairs are necessary, negotiate with the seller about who will pay for them, or cancel the purchase agreement, if you've reserved the right to do so.
• Stay in touch with your loan officer while waiting for your loan approval. Have your records handy during this time.
• Give your landlord notice if you currently rent.

Step 4:

The Closing

• Choose and pay for homeowner's insurance for one year.
• Make sure you have a closing agent or real estate attorney lined up to help with the closing.
• Request to view closing documents one business day before closing (sooner if they are available).
• Get a copy of the HUD-1 Settlement Statement from the closer one business day before closing. The HUD-1 lists all closing costs.
• Contact the closing agent with questions or problems concerning fees listed. (Ask about any fees that don't match those listed on your good faith estimate.)
• Inspect the property just prior to closing.
• Get the deed to transfer ownership of the home from the seller.
• Sign a promissory note stating that you’ll pay back the mortgage with monthly payments at a certain interest rate.
• Pay the balance of your down payment and closing fees.
• Pre-pay taxes and insurance to your escrow account if the terms of your loan require this.

Step 5:

You're a Homeowner!

• Take your deed and Social Security number to the courthouse to file for homestead tax status.
• Finish packing.
• Move into your new home at the time you and the seller agreed upon and noted in the purchase agreement.
• Put the utilities in your name.

Next Page: Additional Consumer Information

 

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