1. Get pre-qualified with a lending specialist
2. Shop for your dream home with an accomplished real estate professional
3. Choose a top 2 list
4. Place an offer on #1
5. Be prepared for a counter offer
6. Sign and date the effective contract
7. Take note of the option period
8. Order inspections and negotiate repairs
9. Terminate or proceed with the contract
10. After final approval, go to closing to sign and own your new home

In addition to the 10 steps to buying a home you will need to consider the following up-front costs in order to determine if you have the appropriate cash reserves to get started:

• Earnest money – typically 1% of sales price – the amount of earnest money is negotiable and varies with the value of the property
• Option money – $100 – $350
• Inspection fee – $400 – $450
• Appraisal – $325-$425
• Credit report – $75

Now that you know the upfront costs, in our next segment we will explore what you will need in order to determine your buying power and how to get pre-qualified for financing.