Nine Steps to Home Ownership

This seems like the obvious first choice.  Write down the reasons why you want a new house.  Determine how long you're going to live there and if buying it makes financial sense.  You also need to determine if you can afford the house.  Your mortgage payment should not exceed 1/3 of your net monthly income.

2) Seek professional guidance

Meet with a realtor and talk about why you want to buy a house and your plans for the future.  They will determine your wants and needs and help you get pre-qualified for a mortgage loan.

3) Begin the search

Your real estate agent will then search for houses on the market that fit your criteria and schedule appointments for you to see them.  A great way to preview the house is to look at a virtual tour online if it's available.  Your agent can help point out the positives and negatives of the homes to help narrow down your search.

4) Know the market

Your realtor will be able to tell you if a particular neighborhood is "hot" and requires immediate action.  In a "seller's market", its common to see multiple offers on a property, full-price offers and even above-price offers.  In a "buyer's market", there are more houses available than there are buyers.  This allows for more negotiating room.

5) Find your dream home

When your find your dream home, your agent will put together a purchase offer tailored to fit your needs.  The offer is often presented with "earnest money." This is a cash deposit made to the seller to secure an offer to buy the property.  This amount is then applied to the closing costs.

6) Negotiate the deal

You may receive a counter offer after your initial purchase offer.  You can talk with your agent and decide whether or not to accept the offer, submit your own counter offer or reject the offer.

7) Get a loan

You will be working with a mortgage lender to close the loan during your closing period.  Your realtor will gather the necessary information for your lender to close your loan.

8) Close the deal

At the time the loan application is submitted to the lender, you will receive a "Good Faith Estimate" of the closing costs.  This estimate is based on the loan officer's past experience and may not include all closing costs.

9) Move in