Buying a home may well be the biggest single financial decision of your life. Before you start shopping around, it is important that you understand the basics about the home buying process.

Getting Started
The initial step in your purchase of a home is your selection of a real estate agent. The real estate professional that you select will help you focus your search for the home that fits your needs and desires as well as the realities of your budget. Your agent will introduce you to the entire home buying process from identifying areas, features and types of homes in which you are interested, to assisting you in determining your qualifications for the financing of your purchase.

Selecting Your Home
To assist you in finding your ideal home, it is important that you complete the The Buyer's Preference Worksheet to help you focus your search only on those homes that offer exactly what you want. Simply print the worksheet and fill it out. By doing so, you will save your agent and yourself valuable time in locating your perfect home.

The next step in the process before you begin your search is to determine the price range you can afford. The Affordable Price Range Calculator will compute an affordable amount based on your financial situation. In addition, The Down Payment Calculator will automatically determine how much money you can comfortably put down on your purchase without overextending yourself.

The next step you should take is to Prequalify yourself for a mortgage loan. It's one of the smartest home buying choices you can make. Prequalifying first makes finding your home easier - with more certainty and less anxiety - because you won't be going through the whole process worrying about your mortgage approval. You'll be looking at homes you and your agent know you can afford - demonstrating your seriousness as a buyer and negotiating with the seller from a position of much greater confidence. The Mortgage Section guides you through the mortgage lending process and provides direct, on-line access to the nation's lending mortgage lenders.

Once you and your real estate professional have determined the general characteristics of the home you desire and the price range you can afford, your agent will formulate a list of homes that meet your guidelines. When you begin your search, don't forget to bring along The Home Buyer's Companion worksheet. This convenient guide lists all of the factors you should take into consideration when evaluating a home. You should use the companion for each home you tour so you can compare the different attributes of each in order to make a decision you will be happy with.

Contracting For Your Purchase
Once you have identified the home that you wish to purchase, you will need to prepare a contract specifying the details of your purchase of he property. Your real estate professional will help you prepare the purchase contract. Once your contract has been completed and signed by you, your agent will present it to the Seller. At this point, your contract is an Offer to Purchase, and the Seller may proceed in one of three ways.

1. The Seller may ACCEPT your offer in the form presented. If the Seller accepts your offer and signs the contract you now have a RATIFIED contract.
2. Often, however, the Seller, although interested in your offer, may make a COUNTER OFFER, by modifying one or more of the terms of your purchase. At this point you have the option of
   • Accepting the Seller's counter offer and thus ratifying the contract;
   • Countering the Seller's counter offer; or
   • Rejecting the Seller's counter offer thus nullifying the contract.
3. The Seller's third option when presented with your initial offer is to REJECT that offer.

Financing Your Purchase - Mortgages
If you have decided not to Prequalify your mortgage loan, it will be necessary to make application for the financing of your purchase shortly after ratification of your Purchase Contract. Selecting your the proper mortgage program is crucial for all home buyers. The Mortgage Section will guide you through the mortgage loan process and give you on-line access to the nation's best lenders and rates. Applying for your mortgage loan on-line will save a lot of time and facilitate the entire home buying process.

Protecting Your Home - Homeowner's Insurance
Your lender will require you to provide evidence of homeowner's insurance prior to settlement. Chances are your home is your single most valuable investment. It is important that your home is protected by the proper insurance coverage. The Homeowner's Insurance Section will assist you in making a well-educated insurance decision and provide direct, on-line access to the nation's leading insurance companies.

Closing the Deal
Once your contract has been signed by all parties and ratified, it is important that you choose a title company and forward the company you select a copy of your contract to begin the settlement process. It is not necessary to await approval of your loan before forwarding your contract to the settlement company: in fact, to do so may delay the date of settlement The Closing the Deal Section will take you step-by-step through the settlement process and provide you with direct access to the leading Settlement and Title Companies in order to assure a smooth and timely settlement.

Information Library

This area provides helpful information you should know when shopping for a home. Included are:

• Fair Housing - It's Your Right
  A quick reference guide to your legal rights as a homebuyer. Explains the Equal Opportunity Housing and Lending principles. Written by the U.S. Department of Housing and Urban Development (HUD).
• The Home Buyer's Vocabulary
  An in-depth, easy-to-navigate glossary of all the terms you should be familiar with before you begin your search for the perfect home.
• The Home Inspection & You
  Also developed by HUD, this important guide tackles the issues of home inspection from why you need a home inspection to the steps that need to be taken if problems are found. Presented in a Q&A format.

This area is designed to help make it easy to determine your financial situation regarding the purchase of a home and to assist you in making the search process as easy and efficient as possible.

• The Affordable Price Range Calculator
• The Down Payment Worksheet
• The Buyer's Preference Worksheet
• The Home Buyer's Companion Worksheet

Home Inspection Companies

A home inspector is typically called right after the contract or purchase agreement has been signed, and is often available within a few days. Before you sign, however, be sure that there is an inspection clause in the contract, making your purchase obligation contingent upon the findings of a professional home inspection. This area will help you find a reputable home inspection company in your area. You can review the price and services each has to offer and contact them on-line.

Pre-qualify For Your Mortgage Loan

It's one of the smartest home buying choices you can make. Pre-qualifying first makes finding your home easier - with more certainty and less anxiety - because you won't be going through the whole process worrying about your mortgage approval. You'll be looking at homes you and your agent know you can afford - demonstrating your seriousness as a buyer and negotiating with the seller from a position of much greater confidence. This link takes you to the Home Mortgage Center section and walks you through the mortgage lending process and provides direct, on-line access to the nation's lending mortgage lenders.