Here's an interesting checklist I found the other day:
     
      Home Buying Checklist
      Checklist Provided Courtesy of Laurie Lundeen
      E-Mail: laurie@greenvalley123.com
      Phone: (520) 256-4000
     
      This checklist provides a comprehensive list of the steps involved in buying a home, and some cautions.
     
      Finding Your Home
      There are two ways of finding a home: by yourself, and using a real estate agent. The chart below lists the advantages and disadvantages of looking at homes by yourself versus using a real estate agent:
      LOOKING BY YOURSELF USING A REAL ESTATE AGENT
      ADVANTAGES Can look at homes listed by real estate agents and homes for sale by owners 1. Help from someone who knows the area.2. Can get you into homes when owners are away.3. Can tailor your search to your needs.4. Will do the driving.5. Does not charge for the service.6. Will negotiate price & terms with other real estate agents.
      DISADVANTAGES 1. Hit or miss on seeing inside homes.2. Must make any arrangements yourself.3. Have no representative to negotiate price with other real estate agents None known
     
      In summary, you are much better off using a real estate agent when looking at homes to buy. Not only is it a free service, but you have someone to make all of your house hunting arrangements and to represent you in negotiations.
     
     
      Selecting Your Home
      The first step in the "Home Buying" process is to find out how much house you can qualify for. This will keep you from wasting your time looking at homes you can't afford. A reputable mortgage company can provide this information, and your real estate agent will be able to help you in your selection of this company.
      Another factor which influence home selection include is how "long" do you want to drive to work? (Not how "far" do you want to drive to work?). In some areas it can take you longer to drive two miles than it would take you to drive ten miles from another area. How important are schools and shopping to where you want to live? How many bedrooms and bathrooms are required? Do you need or prefer a single story or a two story home? Have your real estate agent screen the homes meeting your criteria, and only show you those which you might consider.
      Inspect your candidate homes during house hunting, and look for the following:
      Structural Defects: Check the foundation for cracks or water marks. See if the floors are level. Does the roof sag?
      Water Damage: Check the ceiling and walls for stains or unevenly painted surfaces. Look for replastering and/or retiling.
      Plumbing: Check the age of the pipes (often this can be done by seeing what material they're made of).
      Electrical: Check the age of the wiring and plugs, electrical malfunctions (dimming, etc.), and verify that each room has at least two outlets (preferrably grounded outlets).
      Utilities: Check out the previous year's heating and cooling bills; check the age and efficiency rating of the furnace and airconditioner; and the insulation rating factor in the walls and ceiling.
      Pests: Look for signs of termites (small piles of sawdust) and other pests.
      When you finally narrow your search down to one home, perform the following actions BEFORE you sign a contract:
      Pay a professional inspector to identify any structural defects and other problems which require repair. (Information from this inspection can also form a basis for negotiating down the price of the home).
      Ensure that your homes sales contract makes the sale contingent upon a satisfactory termite inspection.
      Insist that the seller buys a home owners warranty on the home, and ensure this is noted in the sales contract.
      Making an Offer
      Now that you have decided on the house you want, its time to make an offer. Your real estate agent will assist you in finding out the true value of the home, and in helping to determine a negotiation strategy for your purchase. Your real estate agent will be knowledgeable of the local market to also advise you on how much homes have been selling below market value or asking price. An experienced real estate agent can save you thousands of dollars during negotiation. Your real estate agent will go over each section of the sales contract as it's being filled out and before you sign the offer. Always make certain that your offer contains the statement that the sale is "contingent upon the buyer being able to obtain financing." If you are making an offer on a home while you are trying to sell another home, ensure that the sales contract states that your "purchase is contingent upon the sale of your first home." Your sales contract should also specify the date that you will move into the house. Now is the time you have to put up some money - you have to come up with earnest money when the offer is presented to the seller. Your real estate agent will let you know how much. This money is usually applied to closing costs when your home closes. Normally, the offer is presented to the seller by the real estate agent without your presence. The seller has the following options when presented the offer:
      · Accept the offer as it is written.
      · Reject the offer completely.
      · Provide a counter-offer, modifying your contract conditions. If your offer is countered, your real estate agent will ask whether you want to accept the counter-offer or do another offer and continue negotiations.
     
      An offer can be rejected or countered for many reasons other than price. These could include: the date you want to move in is too far away or too soon, you may ask the seller to perform a service that he doesn't want to perform (such as repaint the bedrooms), etc.
      Assuming your offer is accepted and the seller signs the agreement, the next step is for your earnest money to be deposited with a title company and held in an escrow account until closing. The title company will research the title on the property to ensure it is unencumbered.
     
      Purchasing Your Home
      Unless you're a cash buyer, you will now need to begin the process of obtainingfinancing for your home. This is initiated by your filling out and submitting a loan application. Other information will be collected for submission with the loan application and will include: an appraisal of the home, a credit report on you, confirmation of employment, bank accounts, etc.
      After all documentation is submitted to the mortgage company, it is sent to an underwriter who will hopefully approve your loan. Even when your loan is approved there are normally conditions which must be met to satisfy the underwriter.
      After loan approval, the title company will proceed to draw up papers for the closing and prepare an accounting of all funds on the closing statement. At this point, you will need to determine your homeowners insurance company, which will be required by the lender for at least the loan amount.
      Your final step is to close on your new home. All appropriate parties will be represented at closing to ensure that it goes smoothly. If you have never attended a closing before, have your real estate agent go over the procedures, processes, and even the paperwork beforehand.