There are so many considerations to think about before buying a new home.  Even if you’re done it before, you’ll need a refresher for good measure.  Make sure you complete the following steps:

Video: First Time Home Buyer Basics

• Obtain a copy of your credit report from the three major companies used by lenders to verify credit.  The Federal Trade Commission (FTC) requires Trans Union, Experian and Equifax provide you with one free credit report annually.  Many buyers fail to complete this step.  They find out later that there were inaccuracies that lowered their credit score and raised their interest rate.
• Your mission will be to identify negative information, inaccurate reporting or unauthorized inquiries.  If any are found, you’ll want to mark it and send it to the respective credit reporting company, along with a letter detailing the specifics.
• Make and keep a copy for yourself.
• Don’t do anything more until you are notified of the corrections and are able to verify they were made.

• Contact a real estate agent to get the buying process moving ahead.  If you try to find a home on your own, you’ll spend time, energy and gas money that could have been used better by allowing an agent to assist you.  Real estate agents have access to all homes listed in MLS (Multiple Listing Service) at their finger tips.  You don’t.
• The agent will advise you that you need to be pre-qualified, and should be able to refer you to credible lenders.  You may want to research some on your own to get the best rate.
• Get pre-qualified through a lender.  Sign the Buyer Agency Agreement with your real estate agent and provide the agent with your pre-approval letter.  This contains the maximum dollar amount you are pre-qualified to loan.
• At the same time, you’ll want to sit down and make a list of what you want in a home – e.g., number of bedrooms, bathrooms, preferred schools, preferred location, number of garages, sunroom, family room, basement, privacy fence, relaxed or formal dining, style of home, amenities desired.
• This will give you a starting point.  Keep in mind, unless you build a home to your own specifications, you’ll probably have to make some concessions in the end.
• Determine the maximum you want to spend on a home.  Your real estate agent will search for homes within your budget and requirements and present them to you.
• You have found a home that you can’t live without and it is in your price range.  Make sure your agent does a comparative market analysis (CMA) to ensure that the home you’re interested in is worth the listed price.  Have your agent find out if there are other offers and what is motivating the seller – e.g., bankruptcy, estate sale.  Check with the local police station for crime stats or sexual predators in the neighborhood.  Have your agent check with local authorities for zoning or assessment issues.
• You should scrutinize the Seller’s Disclosure for the age of all items that would be expensive to repair or replace – e.g., roof, electrical, heat/air unit.  If very old, you may be able to use this as a bargaining tool.
• If everything looks okay, have your agent submit an offer.
• Complete initial negotiations and agree on the price.
• Shop around for a reputable title company, home inspection company and home insurance.  You don’t have to use the company suggested or chosen by your sales agent.  The law gives you that choice.
• If a home warranty was not included in your offer, consider purchasing one.  Understand what will be included before you choose one.  Some cover more than others.  Also, compare prices.
• Make sure you’re at the inspections.  Note anything that appears out of place and ask the inspector about it at the time.  The most important items to note are the condition of the foundation, the presence of mold and any areas in the home that you cannot clearly see – e.g., a room or closet with boxes or other items covering a floor area.  There could be damage that is being covered up by the seller.

• If anything negative is revealed, use this to negotiate a lower price with the seller.
• Once you have negotiated an agreeable final price, sign the final offer.
• Do your final walkthrough of your new home to ensure everything committed to by the seller is complete, if applicable.
• Attend the closing. 
• Make sure the Settlement Statement contains what you agreed to with the seller. 
• Sign on the dotted line.
• Congratulations!  You are the new home owner.
• Turn the key in the lock of your new front door, move in and enjoy!