Home Buyers Checklist

  • Familiarize yourself with the mortgage products that are available.  Determine which product will work best for you.
  • Contact a mortgage company or your bank and get pre-qualified for a mortgage.  This will allow you to look for homes that are within your price range. (If you do not know a reputable mortgage company, first find a Realtor and then ask them for a recommendation.)
  • Know your own FINANCIAL PICTURE! At a minimum, you would most likely do the following before you contact a mortgage company:
    • Run a credit report to make certain that there are no discrepancies or problem in your credit history or so you can address any problem proactively
    • Develop a budget for your current situation and get in the habit of using it on a consistent basis
    • Keep your spending patterns in cheek
    • Do an analysis of how a home purchase will affect your budget.  Be sure to factor in not only the mortgage payment, but also funds for items such as repairs and maintenance
    • Begin to gather items necessary for a loan such as:  3 years Income Tax returns, current copies of pay stubs, records of any past derogatory credit history that hasve since been paid off, records of supplemental income, etc.  If you are self employed, you will need all business records and tax returns for the last 3 years
    • If it is possible to do so without adversely affecting you down-payment situation, pay off minor debts.  The less debt you have, the easier your Mortgage process will be.
    • Do not incur any new debt.  Many Mortgage applications have been stopped because the applicant decides to buy a new car or obtain other items.  Since mortgages are based on debt to income rations, a newly acquired debt could be enough to throw the ratios off and make the mortgage unobtainable.
  • If you haven’t already, search the internet or get a referral from a friend to find a Realtor who you feel comfortable with and confident in – your home is the largest financial debt you will incur and is also your greatest asset in you financial portfolio.
  • Determine a budget for your mortgage, insurance, utilities, and upgrades or furnishings so you will be able to compare those cost on the homes you are interested in.
  • Determine your housing needs to determine what types of houses you should be considering (example:  land for horses, town home or maintenance-free, etc.)
  • Decide weather you are buying or building a new home.
  • Now it is house hunting time … Let your Realtor know what type of home you are looking for and what price range.  Also, get on an Iinternet site or one that will allow you to shop the entire market.  You may find something you did not plan on prior.  Make a scorecard for each house to help you keep track of properties you’ve seen. 
  • When you find an acceptable home, you Realtor will write an offer.  Be sure to read it in its entirety and ask questions or seek legal advice if you are confused or have concerns.

What a Real Estate Sales Contract Will Include:

  • WHAT:  A legal description of the property as well as the street address
  • HOW MUCH:  The selling price
  • MORTGAGE CONTINGENCY: Subject to obtaining a mortgage, the specifics of the mortgage, and the number of days in which to make application
  • DEPOSIT:  How much money accompanies the contract and who will hold it
  • CLOSING:  When and where
  • HOME INSPECTION:  Contingency for and the number of days to be performed in
  • WARRANTIES:  Any that are included with the home and a description of the warranty
  • CONOMINIUM, ASSOCITION, OR HOMEOWER’S DUES:  A review period specified in the contract
  • WELL AND SEPTIC:  If applicable, they should be tested and passed
  • PEST INSPECTION:  Who will pay if there is infestation or damage and who will repair
  • POSSESSION DATE:  When the buyers will take possession of the home
  • ACCEPTANCE:  How long the sellers have to respond to the offer with either acceptance or a counter-offer
  • ARBITRATION:  Any provisions for arbitration or disputes
  • INSURANCE:  Whose insurance covers the property up until the closing date and verification that the buyer can receive insurance
  • PROPERTY DISCLOSURES:  Notices of any property disclosures concerning the house
  • It is best if you are using a Realtor who is representing you as a “Buyer’s Agent” as he/she will negotiate the best deal for you and is not working for someone else at the same time.
  • If you haven’t already, make your mortgage request, or at least contact your mortgage lender who has pre-qualified you to see what documentation they will need to proceed with the lending process.  The lender will usually choose, provide, or at a minimum, request an appraisal.  Be sure to confide with your Realtor if you are required to provide the appraisal.
  • Arrange for a home inspection – We cannot emphasize enough the value and necessity of an extensive home inspection.  Any offer to purchase you make should be contingent upon a successful inspection.  If the contract is written this way, any defects in the home must be either repaired or monetarily compensated for.  If you are not satisfied, you have the option to cancel the contract. 
  • Learn about home warranties and what they cover.  Decide if it is something you want to pursue on your new home.
  • Compare and secure homeowner’s insurance.
  • Your Realtor should arrange for the closing and provide a list of closing instructions for you and the closing company.
  • Secure final loan approval and commitment from the lending institution.
  • Make moving plans.
  • Do a final walk through on the home.
  • Complete closing.
  • Move to your new home and begin enjoying your greatest asset!

The purchase process could take as little as 30 days and up depending on weather you have another home to sell, your finances and lending process are in order, the home you choose passes inspections and appraisals or if there are any other discrepancies.