• Shop around for the mortgage package that best suits your needs - be certain to consider the following:
  

  a. Interest rate
  
  b. Points associated with loan
  
  c. Closing cost

• Make appointment with bank - take along all supporting financial documentation, such as pay stubs and tax returns.
  
  
• Fill out Residential Loan Application – make copies to use with other banks should this one not work out.
  
  

4. The Search

• View homes, and narrow search to top 3 or 4.
  
  
• Observe potential problem areas.

  a. Watch for factors that could affect resale.
  
  b. Consider characteristics of each neighborhood.
  
  c. List the pros/cons of each house, and select your #1 and #2 house.

5. Make offer on home

• When making an offer to purchase, you will need to consider the following factors:
  
  a. What will the offer price be?
  
  b. How, and on what terms will you negotiate?
  
  c. What contingencies will you include or not include?
  
  
• What is your negotiating position?
  

  a. Is there strong competition for this home?
  
  b. How strong are you financially? Is this a cash offer, or will you need a difficult loan package?
  
  c. Do you have a home to sell, or are you ready to close?
  
  d. How much earnest money will you put down?
  

6. You have an accepted offer…now what? Removing contingencies before deadlines.

• Earnest money – the deposit, which provides the seller evidence of buyer’s "good faith" intention to carry out the terms of the contract. This money is applied to your purchase and will reflect on your closing statement.
  
  
• Home inspection - usually done within 15 days of an excepted offer.
  
  
• Well/Septic inspections should done by the seller within 15 days of an excepted offer and must be addressed in the "Original" Offer to Purchase.
  
  
• Did you request other inspections or tests – radon or lead paint?
  
  
• Finance contingency
  
  a. Make sure loan is in place and on schedule.
  
  b. Get the loan commitment letter to the seller in a timely fashion.

7. Don’t forget the little details

• Arrange for homeowner’s insurance in a timely manner.
  
  
• You, or your attorney should review the title for evidence, that the seller is conveying (transferring) a clear title.
  
  
• Remember to send out change of address notice to all, including the newspaper and for voter registration.
  
  
• Notify all utilities - cancel current address and set up new address.

8. Pre-closing walk-thru

• Set up a time, within 3 days of the closing date, to walk-thru your new home to make sure there hasn’t been any damage done.
  
  
• Make sure there were not things removed that should not have been, and that things that are to be removed have been.

9. Understanding closing day — This is a two step process - you bring the money and the seller brings the deed.

• Step one - getting the money – all the documents – sign, sign, sign
  
  a. Mortgage – your pledge of collateral
  
  b. Note - your promises to pay
  
  c. Re-sign your original loan application – showing that nothing has changed
  
  d. Verify your social security numbers – for reporting – to the IRS - interest paid
  
  e. How taxes/insurance to be paid - escrow
  
  f. Automatic payment
  
  g. Closing Statement – this is an official accounting of how the money is being spent
  
  h. Other bank documents
  
  g. You now have the money to close
  
  
• Step two: giving the money to the seller and getting the deed
  
  a. The Deed – which transfers ownership to you
  
  b. Transfer Return – which shows the State how much was paid for sales tax purposed
  
  c. Seller affidavit – this is for title purposes
  
  d. Don’t forget to get the keys/garage door control
  
  e. Last chance for questions – what day does the garbage get picked up on?
  
  f. Congratulations and shake hands

10. Be prepared for any last minute problems

11. It is a good idea to have a team in place to handle this transaction. Plan on having some or all of the following:

a. Attorney

b. Title Company

c. Insurance Agent

d. Bank Loan Officer

e. Appraiser

f. Home Inspector

g. Well/Septic Inspector.