This 10 step document outlines the process for buying a house, including: figuring out your budget, getting pre-approved by a lender, identifying your housing needs and wants, hiring a realtor, touring homes, making an offer, home inspections, entering escrow, closing, and protecting your investment with insurance and maintenance. The steps include assessing finances, selecting a lender, defining must-have features, working with an experienced realtor, thoroughly inspecting prospective homes, making an offer contingent on inspections, and completing all legal processes at closing.

1. 10 Steps To Buying A House
Carey Farmer
Your Treasure Valley Agent
www.yourtreasurevalleyagent.com

2. STEP ONE
Figure Out How Much You Can Afford
What you can afford depends
on:
• Your income
• Credit rating
• Monthly expenses
• Your down payment
• The interest rate

3. STEP TWO
Select A Lender & Get Pre-Approved
What To Look For In A Lender:
• Do they offer a range of loan
products?
• Are they offering the best
rate and terms on a home
loan?
• Does the lender have a
genuine interest in serving
you?

4. STEP TWO
Select A Lender & Get Pre-Approved
Pre-Qualified Versus Pre-Approved
Pre-qualified: You have told a lender your income level, your
debt and credit information and the lender has estimated what
you can afford.
Pre-approved: The lender has assessed your credit report,
checked your debt-to-income ratio, and run a an in-depth analysis
of your financial situation.
When you are pre-approved you will be provided with an official
pre-approval letter for a designated loan amount.

5. STEP THREE
Identify What You Want In A House
• Before you begin your
search for a home, think
about what you "need"
versus what you "want" in a
home.
• Consider:
– Size
– Amenities
– Home Maintenance
– Location
– Neighborhood

6. STEP THREE
Identify What You Want In A House
Size criteria to consider:
• Number of bedrooms and
bathrooms
• Size of kitchen and dining
area
• Family living space
• 1 or 2 or 3 car garage?
• Front yard and backyard
usage needs

7. STEP THREE
Identify What You Want In A House
Home amenities to consider:
• Hardwood or Tile Flooring
• Fireplace
• Skylights
• Solid surfacing in the kitchen
like granite or slate
countertops
• Built in or free standing
appliances
• Walk in closets
• Freestanding garage

8. STEP THREE
Identify What You Want In A House
Home Maintenance criteria to
consider:
• Age and condition of
appliances
• Age and condition of heating,
air and water systems
• The need for yard
maintenance and lawn care

9. STEP THREE
Identify What You Want In A House
Location criteria to consider:
• Closeness to work and/or
schools
• Closeness to shopping and
community activities
Neighborhood criteria to consider:
• Quality of schools
• Crime rate
• Noise & Traffic
• Air & Water quality
• Zoning

10. STEP THREE
Identify What You Want In A House
Home Owners Association
• HOA Dues
• Restrictive Covenants
HOA Access to:
• Parks
• Community Gardens
• Gyms
• Swimming Pools
• Tennis Courts
• Community Centers

11. STEP FOUR
Hire A Realtor
Why Hire A Realtor?
They are:
• Knowledgeable and
experienced in the buying
process
• Knowledgeable of the local
market and prices
• Skilled and experienced at
negotiation

12. STEP FOUR
Hire A Realtor
What To Look For:
• Licensed & Certified
• Experienced
• Personable &
Communicates Well
• Tech Savvy
• Knowledgeable of Local
Markets & Prices
• Full Time

13. STEP FIVE
Tour Prospective Homes
Bring a camera, tape measure
and notebook to take notes.
What To Look For:
• Assess the quality of interior
lighting in the home
• Assess the impact of the sun
and trees on light in the house
and yards
• Inspect the quality of any
fences
• Assess the water pressure
• Test any gas fixtures including
stoves and gas fireplaces.

14. STEP SIX
Make An Offer
• Your agent will provide you with a generic purchase contract,
which together you will modify to fit your specific needs.
• The contract identifies the key points of the contract: buyer,
seller, property location, brokers, etc., as well as the
purchase price offered, the down payment, the loan amount,
and the deposit.
• A response time is identified for a response to the offer, for
obtaining financing, for closing on the home, and for moving
in.
• Contingencies or terms are also outlined, such as the offer
being conditional based on the sale of your current home or
the findings of a home inspection.

15. STEP SEVEN
Home Inspection & Disclosure
Once an offer is accepted, your Real Estate agent will collect and
hold a deposit check or earnest money from you. The home is
then inspected and the seller must disclose any known defects
with the property.
• The inspection is completed by an independent inspector and
the process is designed to detect any major flaws or
deficiencies in the home. Note: It is not designed to facilitate
the detection of all flaws, problems or occurrences that might
exist in any given home.
• At this time, the seller is obligated under law to disclose all
known defects of the property in written form as part of the
purchase contract.

16. STEP EIGHT
Escrow
Once the home inspection is done and disclosures have been
made, a final sales agreement is reached and the process
moves into escrow.
• As you enter into escrow your Real Estate agent will turnover
your deposit check or earnest money to the Title Company
who will process the sale.
• During escrow, the title company:
1. Conducts a title search for any outstanding liens against
the property to ensure the sale is legal and binding.
2. Completes and files all the necessary documents to
finalize the sale.
Additionally, any and all conditions to the sale must be satisfied
during this phase in the process.

17. STEP NINE
Closing
Closing is a two step process that involves:
• Walk Through Inspection:
– Verify that all included appliances are in working order
– Turn on every faucet and flush toilets
– Plug something into each outlet
– Check the smoke detectors
– Test the heat and the air-conditioning
– Look for water and mold on ceilings
– Examine for signs of vermin
• Signing of Purchase Documents & Payment

18. STEP TEN
Protect Your Investment
Protect your investment through:
• Home Insurance
– Home Owners Insurance
– Fire/Flood
– Liability
• Home Maintenance
– Heat, AC & Water Systems
– Roof
– Paint/Siding
– Walkways & Yards

19. Looking For A Realtor?
• I would love to be your realtor!
• Contact me at:
carey@careyfarmer.com