1. Make a list of the activities-movies, health club, church-you engage in regularly and stores you visit frequently. See how far you would have to travel from each neighborhood you’re considering to engaging in your most common activities.
2. Check out the school district. The Department of Education in your town can probably provide information on test scores, class size, percentage of students who attend college, and special enrichment programs. If you have school-age children, also consider paying a visit to schools in the neighborhoods you’re considering. Even if you don’t have children, a house in a good school district will be easier to sell in the future.
3. Find out if the neighborhood is safe. Ask the police department for neighborhood crime statistics. Consider not only the number of crimes but also the type-burglaries, armed robberies-and the trend of increasing or decreasing crime. Also, is crime centered in only one part of the neighborhood, such as near a retail area?
4. Determine if the neighborhood is economically stable. Check with your local city economic development office to see if income and property values in the neighborhood are stable or rising. What is the percentage of homes to apartments? Apartments don’t necessarily diminish value, but they do mean a more transient population. Do you see vacant businesses or homes that have been for sale for months?
5. See if you’ll make money. Ask a local REALTOR® or call the local REALTOR® association to get information about price appreciation trends in the neighborhood. Although past performance is no guarantee of future results, this information may give you a sense of how good an investment your home will be. A REALTOR® or the government planning agency also may be able to tell you about planned developments or other changes in the neighborhood-like a new school or highway-that might affect value.
6. See for yourself. Once you’ve narrowed your focus to two or three neighborhoods, go there, and walk around. Are homes tidy and well maintained? Are streets quiet? Pick a warm day if you can and chat with people working or playing outside. Are they friendly? Are their children to play with your family?

1. Decide how much home you can afford. Your mortgage broker can assist you by getting you prequalified for a loan.
2. Develop a wish list of what you’d like your home to have. Then prioritize the features on your list.
3. Select three or four neighborhoods you’d like to live in. Consider items such as schools, recreational facilities, area expansion plans, and safety.
4. Determine if you have enough saved to cover your downpayment and closing costs. Closing costs, including taxes, attorney’s fee, and transfer fees average between 2 percent and 7 percent of the home price.
5. Get your credit in order. Obtain a copy of your credit report.
6. Determine how large a mortgage you can qualify for. Also explore different loans options and decide what’s best for you.
7. Organize all the documentation a lender will need to preapprove you for a loan.
8. Do research to determine if you qualify for any special mortgage or downpayment-assistance programs.
9. Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.
10. Find an experienced REALTOR® who can help you through the process.

For example, if you have less cash on hand for a down payment or for closing costs, your Realtor® and lender can often still help you put together an offer that will work.

The lender must disclose a good faith estimate of all settlement costs. A check to cover your closing costs will probably have to be a cashier’s check. The title company or other entity conducting the closing will tell you the required amount for:

• Downpayment
• Loan origination fees
• Points, or loan discount fees, you pay to receive a lower interest rate. (Note — we generally advise against paying points, and we don’t recommend lenders who push them).
• Appraisal fee. Note that often the lender will require a check for the appraiser up front. Typically this will cost about $350.00.
• Private mortgage insurance premium (if applicable).
• Insurance escrow for homeowners insurance, if being paid as part of the mortgage
• Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
• Deed recording fees
• Title policies.
• Survey (if applicable).
• Inspection fees. Generally in our service area it’s traditional for the buyer to pay for whole house inspection. The price for this depends on the size of the home. Paying this at the time the inspection is done can often save you money. The seller generally pays for the pest inspection.
• Notary fees.
• Prorations for your share of costs, such as utility bills and property taxes

A Note About Prorations: Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance.

1. Get prequalified for a mortgage. You’ll be able to make a firm commitment to buy and make your offer more desirable to the seller.
2. Stay in close touch with your real estate sales associate to find out first about new listings that come on the market. And be ready to go see a house as soon as it goes on the market.
3. Scout out new listings yourself. Look at Internet sites, newspaper ads, and drive by the neighborhood frequently. Maybe you’ll see a brand-new “for sale” sign before anyone else.
4. Be ready to make a decision. Spend lots of time in advance deciding what you must have so you won’t be unsure when you have the chance to make an offer.
5. Bid competitively. You may not want to start out offering the absolute highest price you can afford, but don’t try to go too low to get a deal. In a tight market, you’ll lose out.
6. Keep contingencies to a minimum. Restrictions such as needing to sell your home before you move or wanting to delay the closing until a certain date can make your offer unappealing. In a tight market, you’ll probably be able to sell your house rapidly. Or talk to your lender about getting a bridge loan to cover both mortgages for a short period.
7. Don’t get caught in a buying frenzy. Just because there’s competition doesn’t mean you should just buy anything. And even though you want to make your offer attractive, don’t neglect inspections that help ensure that your house is sound.

1. Be choosy, but be realistic at the same time. There is no perfect home.
2. Do your footwork before you start looking. Decide specifically what features you want in a home and which are most important to you.
3. Get your finances in order. Review your credit report and be sure you have enough money to cover your downpayment and your closing costs.
4. Don’t wait to get a loan. Talk to a lender and get prequalified for a mortgage before you start looking.
5. Once you know what price range you can afford, review the list of must-have features for your home. Will they all be available? Should you consider building equity in a “starter home” or condo first?
6. Decide when you could move. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area?
7. Don’t ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion.
8. Think long-term. Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer? This decision may dictate what type of home you’ll buy as well as the type of mortgage terms that suit you best.
9. Don’t let yourself be “house poor”. If you max yourself out to buy the biggest home you can afford, you’ll have no money left for maintenance or decoration or to save money for other financial goals.
10. Make sure you do a whole house inspection, and ask the seller to clear pest. It’s also a good idea to ask the seller to provide a warranty from the seller to cover defects within one year.
11. Get help. Consider hiring a Realtor® as a buyer’s representative. Unlike a listing agent, whose first duty is to the seller, a buyer’s representative is working only for you. And often, buyer’s reps are paid out of the seller’s commission payment.

REQUESTS A TITLE REPORT AND POLICY

• Title Report:  A report showing the condition of title before a sale orloan transaction.  After completion of the transaction, a title insurance policy is issued.
• Title Policy:  Title insurance is insurance against loss resulting from defects of title to a specifically described parcel of real property.  Defects may run to the fee (chain of title) or to encumbrances on the property.

(You will want to ask your title officer for an explanation of any exceptions listed on the pre-liminary title report)
DRAFTS A DEED OF TRUST

• Deed of Trust:  A document filed with the county showing a property is transferred to a trustor by the borrower (trustee) in favor of the lender (beneficiary) and reconveying upon payment in full.

PAYS OFF EXISTING LOAN

• The title company pays off any existing loans and lienholders.

TAXESAND INSURANCE

• The title company prorates the taxes and insurance upon instructions from the Buyer and the Seller.

CONFIRMS HAZARD INSURANCE
COORDINATES SIGNING OF DOCUMENTS

• Oversees the Buyer and Seller in signing all necessary documents to close the escrow.

RECORDING DOCUMENTS

• The title company records the appropriate documents such as the deed and lender’s re- quired documents, with the county recorder’s office, giving public notice.

DISBURSEMENT

• The title company disburses the documents & money to each party

• A real estate transaction is complicated. In most cases, buying or selling a home requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page government-mandated settlement statements. A knowledgeable guide through this complexity can help you avoid delays or costly mistakes.
• Selling or buying a home is time consuming. Even in a strong market, homes in our area stay on the market for an average of 45 days. And it usually takes another 60 days or so for the transaction to close after an offer is accepted.
• Real estate has its own language. If you don’t know a CMA from a PUD, you can understand why it’s important to work with someone who speaks that language.
• REALTORS® have done it before. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. And even if you’ve done it before, laws and regulations change. That’s why having an expert on your side is critical.
• REALTORS® provide objectivity. Since a home often symbolizes family, rest, and security, not just four walls and roof, homeselling or buying is often a very emotional undertaking. And for most people, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you keep focused on both the business and emotional issues most important to you.
• REALTORS® are members of the NATIONAL ASSOCIATION OF REALTORS®, a trade organization of nearly 1 million members nationwide. REALTORS® subscribe to a stringent code of ethics that helps guarantee the highest level of service and integrity.