Steps To Owning a Home:

1. Get pre-approved for a loan. Allow your loan officer to "pull your credit" to make sure there is nothing hindering your credit score and that you are in fact able to qualify for a loan. You may need to provide your loan officer with two months of bank statements and W-2s for the past two years.

Establish a price range for homes before you start looking. Although you may qualify for a higher priced home than what you were expecting, make sure you are comfortable with the monthly payments.

2. Find a real estate agent to work with you on finding a home that best meets your needs. Have "agency" explained to you and sign a buyer's representation agreement if you feel that real estate agent is a good match for you.

A buyer's representation agreement allows your agent to work with you and represent you in a real estate transaction. It also binds you to working solely with that agent. You may go to open houses with out your agent but should let the agent working the open house know that you are working with someone else. If you purchase a home with an agent other than the agent you are under contact with you will be required to pay commission to the original agent.

3. Preview houses, go to open houses, and look at ads. Establish what is out there for the price you are willing to pay. Be realistic with your needs, wants, and market prices.

4. When you and your agent find a home that you like you will write a purchase agreement. Attached to the purchase agreement will be earnest money; earnest money is typically 1% of the price of the home. Earnest money is applied to your loan at closing. If you walk away from the deal before closing the sellers keep your earnest money.

You will set a date for an inspection. Your agent will line up the inspection if you request. The inspection is paid for by you on the day of the inspection; estimate $200-$275 for an inspection.

5. Once the offer is signed and the inspection contingency is dropped your agent will set up closing times and fax all documents to your loan officer. You will need to be in contact with your loan officer and lock your interest rate when they require. There may be a fee at this time for an appraisal (approximately $300), ask you loan officer for specific details.

6. One month prior to closing you will need to find an insurance agent to insure your home. You may be required to pay one year of homeowner's insurance at that time. Your insurance agent will send a binder to your loan officer that must arrive two weeks before closing. Contact your real estate agent for insurance recommendations or visit the resources page at www.wesellrochester.com.

7. Before closing you will want to set up utilities; garbage, electricity, gas, phone, cable, etc. Please refer to our "resources" page at www.wesellrochester.com for phone numbers and websites. Utilities can be set up effective the day of closing.

8. On the day of closing you and your agent will do a final walk-thru of the home and then proceed to closing. The final walk thru is to make sure all defects in the inspection are remedied and that the house is in the same general condition as it was when the purchase agreement was written.

9. Closing can take anywhere from 20 minutes to 2 hours depending on the loan. You will pay your closing costs and any down payment at this time. Bring your checkbook and ID to closing.

10. After closing you are the owner of the home and may take possession!