Home Buying Process

1. DEFINE GOALS:  New home’s location, style, size, price range, number of bedrooms & bathrooms, type of building & construction, parking, importance of windows, kitchen, space floor/level, dining space requirements and other attributes such as air conditioning preference, heating preference, layout preference, concierge, etc.  These goals are likely to be modified & changed over time as you get out there and see what is available in your price range and what the tradeoffs are.

2. SELECT BUYER AGENT:  What are you looking for in the person who will be your coach, trusted advisor & agent?  How will you find this person? It is an exclusive relationship so you will want to feel comfortable with your choice.

3. HOW MUCH CAN YOU AFFORD?  Talk to at least one lender.  Determine what type of loan is best suited for your requirements.  Know how much the guidelines will allow for your loan and then make a decision as to the amount you are willing to borrow.  Get Pre-Approved.   MORTGAGE CALCULATOR LINK

4. LEAN HOW TO “LOOK” AT A HOME:  Visualize how you would live in the home and how it would feel.  Determine room attributes that would be critical for you.  Get to know size measurements versus what you think you need versus the ‘efficiency’ of the layout.  Consider whether some level of renovation will make a difference for some properties.  Review tradeoffs for each property. Compare properties and analyze why one is better than another.  Prepare a system to keep track of your evaluation.

5. KNOW THE AVAILABLE INVENTORY:  Go to open houses as well as scheduled showings to know the inventory. Watch various internet sites to know new listings as well as price changes & sales.  Become familiar with what others are paying for properties that are similar to what you are looking for.  Prioritize the attributes you are seeking…recognizing most people do modify these preferences as they get out there and see properties.

6. MAKING AN OFFER: Working with your agent, determine the highest price you would be willing to pay for a home and then create a bidding strategy. Submit an Offer to Purchase & negotiate toward the price range that is acceptable to you.

7. DUE DILIGENCE PHASE:  Do home inspection with your home inspector & buyer agent and prepare a negotiation list, if applicable.  Review condo documents and determine if you want to ask for price relief given particular aspects of those documents that may result in your having to outlay funds for special assessments, etc. in the near future.  Negotiate a price adjustment to reflect those items found in the home inspection & condo documents review that you were not aware of during the Offer price negotiations.

8. PURCHASE & SALE CONTRACT: With your attorney, negotiate the P&S contract terms & details. Sign & convey the required additional deposit as per the terms of the contract.

9. LOAN APPLICATION:  Apply for a loan after finding a lender you are satisfied with.  Submit the requisite paperwork to satisfy the loan officer & underwriter.  Follow the home appraisal and review the appraiser’s report.  Re-negotiate selling price if there is a contingency in your Offer to protect you in the event the appraisal is less than the agreed upon selling price.

10. FINAL WALK THRU & CLOSING:  Visit the home just prior to closing to ensure its condition is the same as when you had made your offer and everything is ‘broom clean’.  If not, there will be last-minute negotiations for a credit.  Closing is done with your closing attorney at their office or at the Registry of Deeds.

Click here for the US Dept of Housing & Urban Development’s “Buying a Home” site.