purchasing a home

Determine how much you can afford, then how much of this you are willing to pay. Tell your Realtor the maximum you can and will pay and let the Realtor decide the price range of properties to show you in your price range.

Pre-qualification or Pre-approval. This is a beneficial first step. It helps both you and the Realtor by knowing the price home you can afford, and it also points out any potential qualifying problems early, so that you may be able to have them resolved early rather than delaying a closing or even losing a home you want. It also helps you in the negotiating sate as the sellers will want assurance that you can purchase the home. A pre-qualification can be done rather quickly, and can be done by phone. It lets you know what you can afford, and basically is saying that if what you say is correct and can be verified, they should be able to grant the loan. A pre-approval is actually an approval of your loan, subject only to the house qualifying (subject to its appraisal and inspections). This step will require a signed loan application, and probably the payment of a fee for the credit report. You should determine how long this approval is good for, and whether it locks in an interest rate, or how it would vary if the rate changes.

The search. Make out two lists of what you are looking for in a house: those things that you must have, and those things that you would like to have. When talking to you Realtor, go over not only what you want, but why you want those things - a good Realtor may be able to suggest homes that don't meet your stated requirements, but do meet your needs.

Shop with a pad of paper - make notes. It's usually helpful to name houses, so you and your Realtor can more easily talk about them and know you are referring to the same house. Share your feelings with your Realtor - not just Yes or No, but what things you liked and did not like about each house. Your agent should begin to see a pattern, and set his creativity to work. The first day's appointments were made ahead of time, but the second time out the homes chosen should reflect the information gleaned the first time. By the third time, if the agent just doesn't get it-it may be time to choose another agent.

The offer. When you're ready to make an offer on a home, have your agent do a market analysis on the home - what have comparable homes sold for in the area, how do they compare to this home, what others are on the market - and have him review it with you. Your offer should be made based on what the home is worth rather than on the listing price of the home. There are no hard and fast rules on negotiating strategy - it depends on the situation and the parties involved. Rely on your Realtor here, which is one of the places that experience counts - successful experience, that is.

Once the terms are acceptable to both sides and all parties have initialed all the changes, the date of the last signature or initial becomes the effective date of the contract, which is the trigger for many of the time frames in the contract. Until all parties have initialed all changes, you don't have to have a contract!

Between Contract and Closing. You/your Realtor should schedule the inspection immediately - the good inspectors may be backed up for weeks ahead, so schedule as soon as you can. Sometimes the inspection is scheduled as soon as the negotiations start, in order to get the inspector of choice within the time frame. You may want to also have a roof inspection, seawall inspection (if you are purchasing a home on the water) and/or radon, lead-based paint, or environmental hazards inspections. Pest control inspections are generally not done until 30 days before closing, due to lender requirements.

Bring a copy of the fully executed contract to your lender. If you have not made written loan application, do so now. Be sure the lender notes the deadlines not only for closing, but for written loan approval. Be sure to make formal application within the time specified in the contract (signed application, along with check for any application fee). If you do not do this timely, the financing contingent approval. Be sure to make formal application within the time specified in the contract. If you do not do this in a timely manner, the financing contingency may be declared null and void.

The lender will order your credit report and order the appraisal of the property.

Your lender/your Realtor will order the survey. This used to be done at the end of the process, once you loan received written approval. Due to insurance requirements, especially if an elevation certification is required, this should now be done soon after you have a contract.

Start on your insurance now. If a hurricane is within a certain distance of Florida, JUA (the Joint Underwriting Association of the state of Florida) will not issue policies unless they have already been paid for in full . Ask your agent if you will need a flood elevation certificate. If so, this should be ordered at the same time as your survey, as it is less expensive when done at the same time.

At least two weeks prior to closing, arrange for the utilities to be turned on in your name as of the date of closing. Some of them may require an advance deposit.

Your funds to close must be paid by a locally drawn cashier's check (made out to the title company) or wired funds. If you do not have the exact amount that will be needed, ask the title company what amount to bring.