Real Estate Survival Guide: Buyer’s Checklist

Refer to this handy list to get you through the buying process.

1. Figure out how much house you can afford.

• Calculate your monthly income and debt.
• Check your credit report and FICO score.
• Prepare to put down an earnest money deposit for your purchase.
• Set aside cash for the closing costs and down payment.

2. Get pre-approved for a mortgage.

• Choose a type of mortgage; Conventional, FHA, VA, RD
• Speak to several lenders and mortgage brokers.
• Shop for the best interest rates and programs.

3. Determine what you want and need in a home.

• Choose a location (downtown, urban, suburban, or rural).
• Choose a type (single-family, townhouse, or condo).
• Choose a price range.
• Choose a size (how many bedrooms & baths).
• Choose an architectural style.

4. Search for homes in the MLS.

• Ask your agent to set up tours of homes that fit your criteria.
• Have them add you to an auto-email search.
• Pick up flyers and attend open houses.

5. Research each home you want to buy.

• Ask your agent for comparables to estimate the property’s current market value.
• Ask the seller’s reason for selling.
• Review all property disclosures.
• Find out about liens, easements or other restrictions.
• Find out about associations and dues.
• Review taxes and utility information.

6. Make an offer and negotiate.

• Determine the purchase price.
• Include contingencies, such as financial & inspection.
• Spell out any special requests (furnishings) and repairs you want included in the sale.
• Determine an earnest money amount; about 1% of the purchase price
• Define a move-in date.

7. Finalize the deal.

• Get a licensed professional home inspection.
• Get the house appraised (your lender will facilitate this).
• Consider getting specific inspections for structural engineering, roof, mold, well, and septic.
• Use the appraisal and inspection reports to re-negotiate if necessary.
• Choose a home insurance company.
• Complete the loan process with the lender.
• Do a walk-through inspection prior to closing.

8. Close the purchase.

• Review the settlement document at least 10 days before closing to see how funds will be collected and distributed.
• Get a cashier’s check or wiring instructions for the amount you need to bring to closing, including the down payment and closing costs.
• Close the sale and move in!