This document provides a step-by-step guide for purchasing a home. It outlines 11 steps: 1) Contacting a real estate agent, 2) Getting prequalified for a loan, 3) Searching for a home, 4) Making an offer and submitting a sales contract, 5) Providing earnest money, 6) Negotiating the contract terms, 7) Performing inspections, 8) Requesting and negotiating repairs, 9) Getting an appraisal, 10) Final walkthrough before closing, 11) Closing and funding the purchase. The guide offers advice at each step and explains the key documents and processes involved in buying a home.

1. Purchasing a HomeA step by step guide for buyersBy Mark E. ButlerHRS Realty

2. Step #1 Call Mark E. ButlerLicensed Missouri salesperson since 2008

3. BS Finance & Banking Hampton University 2009

4. Successful closed over $2 million in sales of residential, commercial, and multifamily properties throughout the St. Louis Metropolitan Area.314 479 5968ormarkebutler@gmail.com

5. #2 PrequalificationThe first step in the home buying process is to become prequalified for a home loan by a reputable lender. To determine if you qualify your loan officer will take a look at your income, credit rating, savings, etc…If qualified, your loan officer will issue you a preapproval letter.

6. Make a list of what you are looking for in a homeNumber of BedroomsNumber of BathroomsLocationSchool DistrictPrice RangeStyleGive MARK a call and set an appointment to view the homes you are interested inQUICK TIP, be sure to bring a notepad and pen when viewing homes to make note of things you may forget later. #3 Searching for a Home

7. While viewing home make sure to observe the condition of….The RoofThe FoundationThe Plumbing StackThe Electrical BoxThe Furnace & Water HeaterThe Condition of Surrounding Homes#3 Searching for a Home (Continued)

8. Once you have selected a home, you must make a formal offer using a sales contract.Using the sales contract you will communicate to the seller the followingPurchase PriceEarnest MoneyClosing DateClosing LocationAll sales contingenciesClosing Costs, etc…#4 Contract Time

9. Along with the sales contract the following items need to be submitted to the sellerSigned Lead Based Paint DisclosureSigned Sellers Disclosure (If necessary)Preapproval LetterCopy of Earnest Money CheckFHA Loan Provisional RiderAny riders if applicable#4 Contract Time (continued)

10. Earnest money is cash that you deposit with the “escrow officer” (usually the title company where you would close) at the time the contract is accepted. This shows the seller that you are serious about purchasing the home, and that you will follow through on all obligations within the contract. If you do not follow through with your obligations in the contract you risk losing your earnest money.Earnest money is only accepted in certified funds (cashiers check or money order).The earnest moneyis credited toward the purchase price of the home. #5 Earnest Money

11. After you have submitted your offer the Seller with either ACCEPT,COUNTEROFFER, OR DECLINE your offer.If the seller accepts the negotiation is settledIf the seller counters your offer you mayaccept, counteroffer, or decline their offer. #6 Contract Negotiation

12. If the sellers declines your offer you mayDraft a new contract and submit it to the sellerMove on to another propertyNegotiating an offer can be a very emotional situation for both parties. I believe thatit is fair to compare the home to similar houses that have recently sold nearby and make your initial offer based on those results. You should never intentionally low ball a seller.#6 Contract Negotiation (continued)

13. Buyers are usually given 10 to 15 days from the acceptance deadline to have inspections performed.Types of inspectionsHome InspectionWood Destroying Insect Inspection (Termite)Municipal Inspection*Gas Appliance Inspection*Inspectors typically give the buyer a “inspection report” after the inspection has been completed, which provides detailed results of the inspection. When purchasing a home in “as-is condition” this step is not included. #7 Inspection Period

14. Generally, sellers are willing to perform repairs requested by the buyers prior to closing. To have repairs considered, buyers must submit the requested repairs on a statestandard form along with any inspection report received. Sellers can accept, counter, or decline repairs similar to price negotiation.When purchasing a home in “as-is condition”, this step is not included. #8 Repairs

15. If you plan on using a mortgage loan to purchase your home you will be required to have an appraisal performed on the home. An appraisal will provide the lender with information on how much the home is worth (appraised value).Lenders will only commit to loan fundsbased on the appraised value. #9 The Appraisal