Buy your dream house with confidence

So, you want to buy a house—now what? The first time buying a home is an emotional, exciting, and exhausting experience. You may also be wondering along the way; what am I missing? Here's how the buying process works from start to finish.

• Do some preliminary online searching. Check into what homes are selling for in the areas you're interested in living. Later on, this will help communicate your wish list with your real estate agent.
• Take care of the budget. Use an online mortgage calculator to determine what your monthly mortgage payment would be if you were to purchase one of these homes you've found online. Make some additional estimates for utilities and see if this fits into your budget.
• Get pre-approved. To get pre-approved for a mortgage, you'll need to get some paperwork ready: pay stubs, W-2s, bank account statements, tax returns for the past two years, credit lines, and names and addresses of your landlords for the past two years. Start with your current bank, but make sure you check out competitor banks as well – you might get a better mortgage loan rate by shopping around. Also, consider the amount your lender approves you for as a maximum – this is by no means what you should spend.
• Find an agent. An excellent real estate agent will help you navigate the process every step of the way. Your friends and family will be great sources—see if any of your trusted contacts have someone they recommend.
• Look at homes. Be patient at this stage. Your real estate agent may show you a variety of homes to get your reaction on features they think you'll like. Give your agent detailed feedback so they can offer you homes that are ideally suited to you. Sometimes, this process can take days to a month. So be patient. Also, make sure you let friends and family know you're looking for a new home. You may even find out about a fantastic home before it hits the market.
• Make an offer. Once you've found your dream home, you may want to move quickly. Your agent will guide you on a reasonable first offer to start negotiations based on market conditions. Also, make sure you consider closing costs which could account for 2-5% of the home price.
• Negotiate. Prepare to go back and forth with the seller a few times on price and selling conditions. Your real estate agent will be your advocate here and try to get you, their client, as much as possible for your money while being fair and respectful to the seller and their real estate agent.
• An accepted offer. Pop the champagne! You'll deposit to an escrow account held by the title company to show earnest money. Escrow is usually 45 days where the seller takes the house off the market with the contractual expectation that you'll purchase the home - provided you don't find any serious problems during the inspection.
• Do a home inspection. Even if the home appears to be flawless, there's no substitute for having a professional inspector review the property for your potential home's quality, safety, and general condition. You don't want to be surprised with a home that needs a lot of unexpected repairs. If the inspection reveals undisclosed severe defects, you can negotiate further to have the seller make repairs or discount the selling price. You'll also likely have the option to withdraw your offer and get your deposit money back.
• Closing. When your negotiations with the seller are successful, and the inspection comes back clean, you should be ready to close. At your title closing, you'll spend a little over an hour signing lots of paperwork and then will be handed the keys after funding.