Learning Center
Getting Started
Now that you have decided that purchasing your own home is the right decision, how do you proceed? The road to home ownership can be filled with obstacles, but it can also be an exciting and extremely rewarding experience! By proceeding with caution and being armed with the facts, you will be able to navigate with ease what can sometimes seem like a complicated maze.
Make a Checklist
A checklist is a powerful tool when it's time to decide what type of home you are looking for. Decide what's essential, what would be just nice to have, and what you can absolutely live without. Focus on the features you need. Three bedrooms? Two baths or is just one okay? Garage? Knowing what you're looking for will make for an easier, more efficient search. Below is a checklist for you to start with.
House Checklist
- Square footage
- Number of bedrooms
- Number of baths
- Overall condition
- Closet and storage space
- Basement
- Fireplace
- Yard/Outdoor space
- Patio or deck
- Garage
- Energy efficiency
- Age and quality of windows
- Age and condition of roof and gutters
Neighborhood Checklist
- Condition of nearby properties
- Traffic
- Noise level
- Safety
- Quality of schools
- Age mix of residents
- Children
- Parking
- Zoning regulations
- Fire protection
- Police
- Snow removal
- Garbage service
Proximity to Services Checklist
- Supermarket
- Schools
- Work
- Shopping
- Child care
- Hospitals
- Doctor/Dentist
- Parks and recreation areas
- Restaurants and entertainment
- Church/Synagogue
- Public transportation
- Airport
- Highways
Find a Real Estate Broker
It's a good idea to start searching for a real estate broker as soon as you decide to buy a home. Shop around and be sure to find someone you'll be comfortable working with. When you talk to prospective brokers, ask questions about the areas and types of homes you're interested in to see if they seem knowledgeable.
Where to find a broker? Friends and relatives who have experience with the purchasing process are often a great source of information. You can also look through your local yellow pages or the newspaper's classified real estate ads. Also, take a drive through neighborhoods you are interested in and note the names of brokers on for-sale signs.
Finally, brokers usually get a fee for their services. Be sure to ask the broker about his or her compensation -- it may be negotiable.
Shop for a Mortgage
Many mortgage companies offer special rates to consumers with good credit. Check your credit score and report with Score Power® the score used by more creditors than any other to judge you as a credit risk.
Shop for Your Home
Once you have a real estate broker, you can begin your hunt. Your broker will be able to find listings for you, based on your checklist. You can also do your own looking, and then ask your broker to show you the house. You can visit web sites, pick up real estate flyers at local grocery stores, read the real estate section of your local newspaper, and drive around neighborhoods you are interested in and look for for-sale signs. The more options you explore, the better your chances of finding the perfect home.
Get an Inspection
When you make an offer on a home, it's a good idea to make your offer contingent on a home inspection, performed by an independent authorized inspector. You will have to pay for this inspection out of your own pocket, but it can save you lots of money in the long run. If you are satisfied with the results of the inspection, then your offer can proceed. Otherwise, you can withdraw your offer or negotiate for a better price.
Get an Appraisal
An appraisal is an estimate of how much your new home may sell for. It's different from a home inspection, which warns you against anything in the new home that should be fixed. A home inspection must be conducted by a qualified home inspector. It is required by the lender.
Get Homeowner's Insurance
Lenders require that you have homeowner's insurance to protect both your interests and theirs. Like everything else, be sure to shop around for insurance that fits your needs. Read more about Homeowners Insurance.
Closing
Closing is the final step. More than likely, you will visit a lawyer's office where the official transaction will occur. It's an exciting time, but don't forget to read everything you sign carefully! Some lawyers will even prepare the documents in advance so you can read through them before closing.