How to Buy a House in 7 Easy Steps

Buying a house is very frustrating. With all the other buyers out there, and not knowing what the seller wants, sometimes it can seem impossible. Knowing what to expect before buying a home, and understanding the process can speed things up, and make things easier on everyone involved.

Instructions

Difficulty: Moderate

1. Get pre-approved for a mortgage. This will tell you how much you can afford to spend on a house. Meet with a mortgage specialist at a bank to do this. Paperwork required will include pay stubs, tax filings from the previous year, a listing of all debts, any accounts and their balances, and any other financial information required. Any amount required as a down payment will be disclosed at this time.
2. Get a good realtor. Realtors handle everything from showing houses to making offers. Pick a realtor from Realtor's website, ask friends and family who they recommend, or meet with different realtors until you find one you like. Usually realtors require that they are the only ones being used to find you a home, and they require a contract stating that you won't go use another realtors.
3. Search for houses in the price range given. Narrow it down further by choosing features in a house that are necessary, a minimum number of bedrooms and bathrooms, and general location. This information is listed in homes for sale listings in the newspaper, as well as local booklets with homes for sale.
4. Make an offer when you do find a house. The realtor will draw up a contract referred to as an offer, that is used to submit the offer to the seller. How much offered for the house, plus who will pay closing costs--the percentage due to each realtor--and any amount the buyer wants for repairs, or repairs the seller needs to do, are in this contract. Once the offer is accepted, the buyer pays earnest or "good faith" money, usually around $250 to $500 or more, to the seller's realtor. This is to prevent a buyer from backing out and leaving the seller high and dry.
5. Get the house inspected. Any problems should be addressed between the realtors for the buyer and the seller. Renegotiate the contract if repairs have to be made. Finding an inspector is up to the buyer. The phone book is a good place to look, or the realtor should be able to recommend one. This will cost around a few hundred dollars, but is well worth the cost. The inspector looks at every detail of the home, from the roof to the lighting and leaks in sinks, and lists every problem that needs repair.
6. Get the house appraised. This is required by the bank before the closing process can begin. It verifies the house is worth what the bank will finance it for. This cost usually falls on the buyer, and is about $500.
7. Work out the closing details on the mortgage. Meet with the title company to sign all the legal documents.