Buying a new home is often the largest purchase most of us will ever make - and it can be a daunting experience. But while it seems complicated, buying a house comes down to knowing the key steps of homeownership and surrounding yourself with people you can trust. New American Funding has been helping people buy homes with first-time homebuyer programs for years, and we know what it takes to get you in a new house. Believe it or not, only 12 steps stand between you and your dream house!

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Step 1 – Talk to Your Family
Buying a new house impacts the whole family and everyone is sure to have an
opinion. Work together to determine the features that are most important for your
next home. Take into consideration the size of home and number of rooms you’ll
need, preferred amenities, location and other factors. Good communication makes
the home buying process easier and more rewarding.
Tip: Choosing the Right Neighborhood
Finding the right neighborhood is
nearly as important as choosing the
right home. Check out our guide:
How to Choose the Best Neighborhood
for You.

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Step 2 – Do Your Homework
If you’re viewing this SlideShare, this is likely the stage you’re at right now. You are
probably also looking at websites, real estate publications and other resources.
That’s great. Knowledge is power when it comes to home buying. You can also
check your local government’s Property Appraiser’s website to get a sense of how
property values are trending for individual neighborhoods.
Tip: Learn from Other
People’s Mistakes
There’s no need to repeat the
mistakes of other home buyers.
Take a look at 6 First-Time
Homebuyer Mistakes and
How to Avoid Them.

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Step 3 – Get Pre-Approved
Getting pre-approved for a mortgage loan is always a smart idea. To get pre-
approved, you simply submit a loan application and supporting documentation to
New American Funding. Being pre-approved lets you know exactly how much
home you can afford to finance so you don’t waste time looking at houses that are
too expensive. Pre-approval also shows prospective sellers you’re serious, making
your purchase offer more credible.
Tip: Prepare Your Documents
Loan applications, including
pre-approvals, require a certain
set of paperwork. Find out what
to expect with our 5 Things You
Need to Be Pre-Approved for
a Mortgage Loan.

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Step 4 – Select a Real Estate Agent
Your real estate agent is an important ally in your search for a new home, so take
time in selecting her or him. Asking friends and neighbors who they worked with
is a good place to start. Interview multiple real estate agents to find one whose
market knowledge, negotiating skills and personality are your best fit. The most
important attribute of a realtor is listening to and understanding your needs.
Tip: Surround Yourself with
the Best People
The real estate agent is just one
of several people you’ll work with
as a home buyer. Take a look at
People Involved in the Mortgage
Process to learn about the other
professionals.

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Step 5 – Find Your New Home
Don’t expect to fall in love with the first home you visit, or the second, or the third.
Finding the right home can take some time and patience is your friend. When you
tour a house, try out everything. Don’t be too embarrassed to open closets, turn
on faucets and test electrical switches. Take notes on each house you visit. You’ll
likely tour a lot of homes and it’s easy to forget which was which.
Tip: Get the Picture
Take photos of each house you
visit and file them with your notes.
Of course, if a home is still occupied,
you should always ask for the current
owner’s permission.

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Step 6 – Make an Offer
Deciding how much money to offer is stressful for many homebuyers. You want
the home, but you want the best possible price. Some say a good rule of thumb
is 5% less than the listing price, but there are several factors to consider.
Review recent sales of comparable houses, consider how competitive
the market is and how eager the
sellers are. A motivated seller may
accept a smaller offer.
Tip: Study the Market
There are several online resources
you can use to find accurate
information about how many
homes have sold in a neighborhood
and at what price. Ask your real
estate agent.

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Step 7 - Negotiate
Unless you offered to pay full listing price, prepare for some negotiation. Just like
you, sellers want the best possible deal in their favor. They will likely counter-offer
on price, but price isn’t the only piece of the puzzle. Some common negotiating
points include closing costs, appliances and fixtures, repairs and upgrades and
occupancy timing. Use all the
tools at your disposal.
Tip: Be Willing to Walk Away
If negotiations aren’t going as you
hope, maybe this isn’t the house
for you. A home is a big investment
and you don’t want to over-extend
yourself.

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Step 8 – Get a Home Inspection
Your buying offer should be contingent upon the results of a home inspection.
Sellers sometimes have inspections done beforehand, but for peace of mind you’ll
want your own inspector to check out the property. An inspector will thoroughly
review the entire home to identify problem areas and any items in need of repair.
The inspector’s findings may
result in another round of
negotiations with the sellers.
Tip: Remember the Walkthrough
Just before closing, you’ll
do a walkthrough of the home
to ensure any repairs were
made. Check out our guide
to What to Look for in a Final
Walkthrough.

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Step 9 – Shop for Insurance
Homeowners insurance protects you against fire, windstorms, hail, lightning,
theft, vandalism and other liabilities. Floods and earthquakes usually have to be
covered under separate policies. Typically, a homeowners insurance policy covers
the structure of the home as well as items inside like electronics, furniture,
clothing, etc. When shopping for homeowners insurance, don’t just look at price.
Research the provider’s financial
stability and record for claims
service.
Tip: Title Insurance
At closing, you will also sign up
for title insurance, protecting you
in case of legal issues with the title
such as errors or omissions,
forgery or undisclosed heirs to
the property.

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Step 10 – Finalize Your Loan
If you were already pre-approved, this part is easy. Your New American Funding
representative will walk you through available mortgage options and any
remaining paperwork and guide you to the best loan type and terms for your
needs. At New American Funding, we make the mortgage loan process easy to
manage and stress free.
Tip: Learn the Terms
Fixed, ARM, VA, FHA…don’t be
intimidated by terminology. Learn
about these terms and more with
our SlideShare on Home Loan
Options – Choosing the Right
Loan for You.

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Step 11 – Have the Home Appraised
To ensure the home is worth at least as much as you’re paying for it, your
mortgage lender will hire a third-party appraiser to physically review the property.
By determining the true market value, an appraisal protects the lender from
making a loan that’s too large for the asset. It also gives the buyer an additional
expert opinion as to the home’s worth.
Tip: Know What They Look For
Appraisers consider everything
from the neighborhood to the
appliances. Find out what else
by reviewing What Do Home
Appraisers Look For.

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Step 12 – Closing
Closing is a meeting during which the formal transfer of property from the seller
to the buyer takes place. It involves a lot of paperwork. Some people joke that
their hands hurt from signing their names so much during. You will need to pay
your down payment, closing costs and other fees during this meeting.
Check with your closing agent in
advance for acceptable forms
of payment.
Tip: Prepare for Paperwork
You’ll be more comfortable
going into closing if you know
what paperwork to expect.
Take a look at our First-Time
Homebuyers Guide to Closing
Documents.

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Congratulations!
It’s Time to Move in!
You’ve successfully purchased a home. We hope you’ll enjoy it for years to come.

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12 Steps for
Buying a New Home
If you’re in the market for a
new home loan, contact us today…
www.NewAmericanFunding.com

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