Step 1 - Know what you want

Whether you are a first time or repeat buyer, knowing why you want to buy and what you want to buy are key to embarking on the process of buying a new home. For example:

• Are you planning on moving to a new community?

• Do you anticipate a lifestyle change?

• What do you want in terms of real estate that you do not already have?

Step 2 - Get a realtor

Buying real estate is a complex matter. No two properties are alike. Not only do homes differ, but so do contract terms, financing options, inspection requirements and closing costs.

A professional by your side who knows how to navigate these potentially costly waters will be sound insurance toward successfully buying the property you want.

Step 3 - Get loan pre-approval

Finding the financing package that best suits your needs can be a complicated process. As your Steinborn GMAC real estate associates we can help you find the method that works for you.

Whatever financial institution you choose, pre-qualification prevents you from having to quickly find a lender, check credit, and rush into a financing decision that may not be the best option.

Step 4 - Look at homes

The availability of homes for sale in a community is always in flux. Any given list of home for sale will soon become "outdated."  The best way to know the most you can about the choices in your preferred market is by working with a professional real estate agent.
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By knowing what you want and need in a home, you can target your search and spend your valuable time looking only at homes that meet those requirements.

Maintain a file of information on each of the homes you like for later review. This will help in the decision making process.

Step 5 - Make an offer

You sometimes hear that the amount of your offer should be based on this or that formula. In reality, the offer has more to do with the simple law of supply and demand. If the seller of the home you want has several prospective buyers, they will be less inclined to negotiate and vise-versa.

The process of making offers varies. Typically, you will complete an offer that will be presented to the owner and the owner's representative. The owner, in turn, may accept the offer, reject it or make a counter-offer.

Because counter-offers are common (any change in an offer can be considered a "counter-offer"), it's important for buyers to remain in close contact their real estate professional during the negotiation process so that any proposed changes can be quickly addressed.

At this stage, a number of inspections are common in residential realty transactions including termite checks, boundary surveys, appraisals, title reviews and structural inspections.

Structural inspections are particularly important. This is an opportunity to examine the property's mechanics and structure, ask questions and learn far more about the property than is possible with an informal walk-through.

Step 6 -Get insurance

There are various forms of insurance associated with home ownership, including these major types:

• Title Insurance

• Home Insurance

• Flood Insurance

Step 7 -Closing

Closings bring together all the parties who are part of the "transaction" process. Before closing, a final walk through the property has typically taken place to assure that its condition has not materially changed since the sale agreement was signed. At closing itself, all papers have been prepared that reflects the sale agreement.

These papers are extremely valuable. File them somewhere safe. In the short-term they can help establish tax deductions for the year in which the property was purchased. In the future, such papers can be important for tax purposes for calculating estate taxes if the property is sold.