How to Buy a Home

You'll do a lot of looking around, go through piles of paperwork, suffer through the loan process - and then hope the seller accepts your offer. Here are the broad steps you'll take.

Difficulty: Challenging

Instructions

Things You'll Need:

• Financial Calculator
• Highlighter Pens
• Personal Organizers
• Online Mortgage/finance Services

1. Figure out how much home you can afford. Consider a down payment, closing costs, mortgage, insurance and taxes.

2. Decide where you want to live. Think about your commute to work, area schools, and resale value of the homes in various neighborhoods.

3. Think about what kind of home you want. Do you want a newer home that requires little or no remodeling? Would you prefer an older home with character that might require some fix-up work? One story or two? Are you interested in a condo or townhouse?

4. Start going to open houses to see what the market is like. The more homes you look at, the better idea you will have of what you can afford and what you do and don't like.

5. Hire a real estate agent or attorney - depending on where you live - to

6. represent you in buying a home. You can also choose to handle the transaction on your own.

7. Find a lender, and get prequalified or preapproved for a home loan.

8. Find the perfect home for you and make an offer.

9. Open an escrow account - or have your broker do it - after your offer is accepted. The escrow office will perform a title search and see if there are any outstanding liens on the property.

10. Hire an inspector to make sure the home is up to code and not in need of any repairs that the seller might be unwilling to pay for or that you could not afford.

11. Hire a termite inspector to make sure the property doesn't have any pest or water damage.

12. When you and the seller have come to an agreement on any repairs to be made and who will be responsible for paying for them, remove all inspection contingencies.

13. Close escrow when all loan documents are signed, the title insurance policy is issued, all money is received by the escrow agent and all fees are paid.

14. Move in!

Tips & Warnings

• Be patient. Finding a home that fits your family's needs can take some time.
• Home values fluctuate with the ups and downs of the economy.
• Buying a home is likely to be the biggest single investment you'll ever make. Invest wisely.

on 3/6/2006 If the house is not currently occupied, be sure to check with your local law enforcement agency to have them check their logs to see if they were ever been called to the house for methamphetamine production or other illicit drugs.

If you end up buying a "meth house" you could be stuck needing a very costly cleaning service to remove the dangerous chemicals from the "bones" of the house (walls, floors, etc.).

You would be surprised at the nice houses in nice areas that have dangerous chemicals in them from previous labs.

on 11/22/2005 Check out the crime rate in the area. Public right of way such as alleyways that run past the property between large housing estates and public ameneties can leave you vunerable to criminal abuse.

on 11/22/2005 If possible, visit the home at different times of the day. A night visit would be essential; this way, you can determine the different types of noise levels in the area. This is imperative when buying a house or even a flat. Noise levels such as birds singing at 4am in the morning and people across the road singing songs at 10pm at night can deter the most determined home buyers from a purchase.

on 11/22/2005 Please consider the family's opinion and be sure you fulfill their wishes as well as yours. You don't want anyone to be miserable, especially children.

on 11/22/2005 You've heard it before, but location is one of the most important factors for your happiness in a home. Visit the area at different times of the day and days of the week. What seems quiet and peaceful at one time might be noisy and congested at others.