Mark Motazedi, MRE, GRI, e-PRO

As a potential home buyer it's important to have a specific timeframe in mind and carefully consider how much you can afford to buy a home. For at least six months prior to purchasing a home take steps to budget by adding the down payment and the closing costs together to determine the amount of money you'll need and take actions to improve your credit score. The best rates and terms are only available to those with solid credit and good down payment. Review your credit score and credit report for free at https://www.quizzle.com. Make a point of paying credit card bills, car payments, rent and mortgage bills in full and on time. Gather all necessary paperwork recent pay stubs, rental /mortgage checks and tax returns for the past two or three years if you are self-employed.

Take the time to do your due diligence and research online at realtor.com and search all of the homes you are interested in visiting compare prices, take video tours and view neighborhood information. Contact a local Realtor to assist you and answer any questions you may have about any part of the real estate process. Also will negotiate on your behalf with the seller of the home and recommend houses which meet your criteria.

Get pre approval letter from a lender with the maximum loan amount which shows your borrowing power based on the latest appraisals and credit reports.

Look at as many homes as possible to find the property that best meets your current and future needs. Consider pricing, location, size, amenities, design, number of bedrooms, bathrooms, commuting distances, lot sizes, property tax costs, interior dimensions, and exterior finishes. Once you choose a home your Realtor will prepare the offer for the house and prepare all of the contracts associated with the home purchase.

Obtained a loan, make sure to review different mortgage loan types and compare their required down payment amounts to the money you have available. Get an estimate of your closing costs, including points, taxes, recording, inspections, prepaid loan interest, title insurance. Request to impound your account in which monthly payments for private mortgage insurance (PMI), property tax and insurance are paid together. Too often buyers fail to pay the annual property tax. Your realtor will work with the title company, the lender, and the seller's agent to arrange all necessary inspections. Carefully inspect home and appliances to save you out-of-pocket fees down the road.

At closing held at Attorney or Title Company office generally is present at the closing meeting: Closing Agent, Lender, Home Seller, Seller's Agent, You, Your Realtor who serves as your advisor during the closing process. The Closing Agent conducts the settlement meeting and makes sure that all documents are signed and recorded and that closing fees (cashier check) and escrow payments are paid and properly distributed. Closing documents will include: HUD-1 settlement statement, Final TILA statement, Mortgage note, Mortgage or deed of trust, Certificate of occupancy. Once you've reviewed and signed all closing documents, the house keys are yours and you have successfully bought your new dream home.