I am often asked, especially by first time home-buyers, where to start and what to expect out of the home-buying experience. Accordingly, I thought it would be a good idea to write an article regarding ?The Process? of purchasing a home.

Mortgage Pre-Approval
Unless you are planning to write a check or bring a briefcase full of money, I always suggest that the first step should be to meet with a loan originator (they may call themselves a mortgage broker, mortgage counselor, loan officer, or anything that sounds similar. Don?t worry, they all more-or-less mean the same thing). This can be done at your home, at their office or even over the phone.

A good loan originator will be able to provide you with a copy of your credit report, discuss your loan options (FHA, conventional, fixed, ARM, etc.), give you an idea of how much you can borrow, and provide a ?Pre-Approval Letter.? They will also let you know what documents you will need to start gathering so you are ready when the right house comes along.

Choose a Real Estate Agent
A typical home search can last from 30 to 90 days, but I have clients that I have been working with for nearly 2 years. What this means is that you are going to spend a lot of time with your real estate agent. It is a good idea to make sure that they are not competent, but that their personality is a good match for you. You may want to interview an agent or two and ask your friends/family if they would recommend the agent that helped them buy their home.

Start Looking
This is where the fun really begins. You are preapproved, so you have an idea of what you can afford. You have chosen a good agent who is helping you understand the market. You have probably made a list of needs and wants for your new home. It is time to start looking.

The internet is by far the most efficient place to start. Have your agent set you up on an automated search of listings and make sure the search automatically includes new listings so you are the first to see the best deals when they hit the market.

Some people like to start with open houses, while others prefer to start looking at homes with a professional. There is no right or wrong way. The one piece of advice that I do give is to do a drive-by of any homes you think may be a good fit. This will not only give you a chance to see the more of the exterior than the MLS photos provides, it will also give you a chance to see the block. Ask yourself if you can imagine coming home to this block every day.

Your agent will be able to give you a lot helpful guidance and advice, but it is up to you to decide what you do and don?t like.

Negotiation
Once you have found the right home, it is now time to get it for the right price. Your agent should be able to provide you with plenty of market data. Ask your agent if they have a strategy for negotiations. A good agent will be able to say more than ?lets make an offer and see what happens.?

A couple things other than price that you may want to consider when negotiating are: Closing Date, Earnest Money, Contingencies, and your loan. You may be able to make your offer stronger with one or more of these terms and still buy your home for the price you want.

Acceptance
Once your offer has been accepted, there are a number of things that happen right away. This includes hiring an attorney to look the contract over, finalizing the loan application, and conducting a home inspection.

This first week can be very hectic and there are even more things happening behind the scenes, such as scheduling an appraiser and reviewing the documents required for the loan.

Underwriting
After the first week or two, there is typically a period when it seems like nothing is happening. The appraisal has been ordered. The inspection issues have been negotiated. And you have secured hazard insurance for the new home. This is a good time to catch your breath and maybe pick out some drapery.

About a week or two before closing, there is usually another flurry of activity. It usually starts with your loan originator calling to tell you that the bank has issued a ?conditional approval.? This means that there the file looks good, but the underwriter wants some additional information or documentation. This can range from another verification of your employment to a paid receipt of your homeowners insurance.

Closing
A ?Closing? is the actual sale of the property. By the time you get to the closing table, everything should be decided and negotiated already. Your attorney will receive a HUD-1 (sometimes referred to as a RESPA) a day or two prior. This is the document that shows all of the items that are paid to and from each party. The bottom line of the HUD-1 is the amount you will need to bring with you that day.

Post Closing
Congratulations, you have purchased a new home. Before you unload the moving truck and have your house-warming party, there are a couple things you might want to consider:
? Taxes: Owning a home may impact your tax returns. It is a good idea to talk to an accountant to see if there are any changes you should make regarding your returns. You may also may want to ask if there are any additional documents that you need collect for your tax returns now that you own a home.
? Life Insurance: You just made what is probably the largest purchase of your life. At the same time, you may have just taken out the largest loan of you life as well. It may be a good time to talk to an insurance agent or financial advisor to discuss if a life insurance policy worth at least the loan balance would be a good idea to protect your family in the unlikely event that tragedy strikes.
? Locks: I always recommend hiring a locksmith to come and change the locks. The seller is obligated by law to give you all of their keys, but you never know what keys they may have lent to family or friend over the years.
? Celebrate: There has undoubtedly been a lot of excitement and stress in the previous months. Take some time to celebrate this milestone in your life.