Making the decision to buy a home and begin the process, especially for the first time, can be a scary proposition. It's hard to know exactly where to start or what to expect. You may have friends or family that can give you the benefit of their experience, unfortunately that also means you may have to listen to one or two "horror" stories. The process, with a little bit of work on your part, really should go smoothly if you're educated, prepared and have a professional agent guiding you through it. Here are some basic steps outlining the process.

• Determine your financial capability. This step actually involves multiple actions and is fundamentally important. It helps you assess what price maximum you are financially qualified for and will lead you to focusing your search criteria based on price.


• Look at what you can afford on a monthly basis. Look at your checkbook or budget to determine what you can pay towards your home. If you're paying $1200 in rent now is that the most you can pay towards your home? Is that what you're comfortable with? Would you be able/willing to pay more? How much? Often when you talk with a lender you will be approved for more of a loan than you would actually want. So assessing your own budget is a good idea too. The Mortgage Calculator I have provided can help in this process.
  


• Talk with a mortgage broker. They will look at your credit score, income and debts to determine what interest rate they will give you and what your maximum loan amount would be. They will also tell you how much closing costs and loan costs to expect. To do a full pre-approval with a lender they will usually need your most recent pay stubs, tax returns and bank statements from you. While a pre-approval isn't necessary upfront, it will often be needed when you make an offer on your home, so it's good to do right away.

I work with some of the very best loan experts in the area and would be happy to give you a referral. Why not take a few minutes to talk with a mortgage broker to see what they can do for you? You may be pleasantly surprised!

Step 2

Choose an agent. It is important to have a professional on your side guiding you through the process from the beginning. If you have any questions at all about the buying process, please call or email me. I'd be happy to help.

Step 3

Select your search criteria. With your maximum price in mind, select the neighborhood, size, bedrooms, bathrooms, quality and characteristics that you desire in a home. Your agent will be able to help you with this. Keep in mind that every purchase of a home involves a certain amount of compromise. When you are working with an agent, it is important that you give your agent a clear idea which of your criteria are flexible and which items you really must have in your new home. Prioritize your need. Sometimes your agent will be able to suggest alternatives that still meet your needs. Make sure you're upfront with your agent so they can use your time and theirs most efficiently and show you only houses that are real possibilities for you. When you've discussed your criteria, your agent will begin searching for a home for you.

Step 4

Look at homes. I'll email you listings as they come available and you let me know if you're interested in any of them. When you are, then we can go view the inside. As an agent, I have an access key to all houses listed on the MLS so it makes it easy to view properties.

Step 5

The offer. Find the right property and write up an offer to purchase it. I will walk you through the purchase and sale agreement and explain the benefits and drawbacks of each section and each decision you make. I will help you decide what price to offer, how much earnest money to provide, the closing date, as well as other important terms of the contract. Once it's complete the offer may change through negotiations with the seller or they may agree outright. Once the seller signs and returns the offer you have a contract to purchase your home! This is the simplified version. It is certainly more involved and important than that.

Step 6

Your home inspection occurs if you opted to have one. A professional inspector of your choosing inspects the home, searching for defects or issues. Many times a purchase and sale agreement is contingent on the home "passing" an inspection. I always recommend inspections for your protection - buying a home "as is" is a risky proposition. Sometimes, due to findings in the inspection, the buyer will ask the seller to repair particular things. Some negotiation may take place around this until both parties agree on what improvements will or won't be done to the home to complete the sale.

Step 7

The loan process begins for this particular home as soon as the purchase and sale agreement is signed by both parties. Your lender works in the background to get your mortgage together. They will usually need paperwork from you throughout the process and it's important to stay in communication with them to ensure a smooth closing and no delays. I will also stay in contact with them through the process to ensure a smooth closing.

Step 8

Escrow also begins working in the background as soon as the purchase and sale agreement is signed by both parties. Escrow is an independent third party between you and the seller. Their job is to handle deposits, prepare the final settlement statement (HUD), arrange legal transfer of the property and release proceeds to the seller. A couple days before the closing date you will need to meet with escrow to sign all the paperwork to transfer the property into your name and secure your mortgage against it. Then closing occurs - the day that the transfer becomes official, the deed is recorded at the county and proceeds are available to the seller.

Step 9 Move in!!

Relax. Finding your new home should be a rewarding experience. Have a good time and enjoy the process. I am here to help!