Home Buyer's Guide

Step 1: Determine What You Want and Need

Begin the home buying process by developing a list of the features you want and need in your next home. You can use this list once you begin actually evaluating properties. Keep in mind that depending on your financing ability, you may have to make some changes in your original list. You should talk to your real estate professional about where you want to live. Location is a very important part of any move. Successful, experienced real estate agents are able to help their clients narrow down their choices by sharing valuable information about the community as well as the current real estate market.

Step 2: Determine How Much You Can Afford

Once you determine what you want, you can now determine how much you want to spend. BlackRealEstate.com provides a number of calculators that will assist in you in this effort.

You are now ready to get approved for a mortgage. This process is much easier than you might think and in most cases can be accomplished in a very short period of time. Once you have been pre-approved you will know how much the bank is willing to loan you, the amount required for your downpayment, if any, and your monthly payment. Ask your real estate agent or mortgage lender to provide you with a pre-approval letter. This letter tells the seller that you can afford to buy their home.

Remember, a pre-approved buyer has an approved mortgage subject to an appraisal of the property, as well as a few other factors. Many times a buyer can use this pre-approved status as leverage during the negotiation process.

Step 3: Starting Looking For Your Next Home

Once you have an idea of where you want to live and know how much house you can afford, its time to evaluate homes! If you start your home search online, you will save time by identifying those properties that actually fit your wants and needs, without having to actually view them.

After you have located potential homes online, it is now time for you and your BlackRealEstate.com real estate agent to visit homes in person. Have your real estate professional arrange visits to houses that meet your needs and are within our established price range. You should also visit as many open houses as possible.

When comparing different properties make sure you consider all aspects of the property. For example have both of the houses been remodeled, do they both have the same amount of bedrooms and bathrooms, and are both houses located on the same or similar streets. Please remember to keep an open mind when you are looking at all potential homes. Your ideal home may not be this most obvious choice.

Step 4: Make An Offer

Once you find the home you want, you need to make an offer. This can be a very difficult process since both you and the Seller have completely different goals. This part of the home buying process is where your real estate professional provides the most value. Your BlackRealEstate.com agent is skilled and experienced with negotiating offers, and will in most cases represent you far better than you could represent yourself. If by chance you have any personal interaction with the homeowner, it is best not to give out any information about your move, your current housing status, financial status or your feelings about their property.

Step 5: You Must Inspect and Insure The Property

One of this first insurance policies you should consider purchasing is a home protection plan. This type of policy can be purchased by the buyer or seller, and it helps protect the new homeowner against unexpected costs for repairs during the first years after the home purchase, as well as the seller against home repairs required during the listing period.

After your offer is accepted your real estate professional will need to set up, coordinate and interpret various inspections, including insect and building quality just to name a few. You will also need to arrange for homeowners insurance prior to the actual closing.

This is a major step in the buying process and there are many potential problems that can be discovered during this period. These include a leaky roof, radon gas, termite damage, a foundation problem, and wall cracks, to name a few. These problems happen all the time. The difference between closing on your dream home and starting the process all over again is what occurs during the negotiations between you and the seller.

In most states you will also have the option of a "walk through" before the closing. This is your last chance to make sure that all of the items that you have agreed upon were completed to your satisfaction.

Step 6: Time to Close

Before the closing date arrives, make sure all the necessary paper work and deposits have been completed. If the mortgage, title work, homeowners insurance and other items required under local and state laws are not completed at the scheduled time of closing, the process may be delayed, and the closing not happen on time. Depending on what the contract says, this could result in further action including financial penalties and even the loss of your rights to the home.

Once you close, it's official - you own the house! But there might be a few things you want to do before you lay out the welcome mat. These include arranging for an alarm system, turning on the electricity, subscribing to the local paper, cleaning or replacing the carpet, arranging for lawn services, etc. This could also be a good time to make some needed renovations.