Buying your first home can be an overwhelming process; it'll probably be the single-most valuable investment you will ever make. While there are many details to consider, the home-buying process is exciting and feasible. The following is a basic guide of the home buying process for those who would like to be well equipped when purchasing their first home. [Be sure to use this guide as a supplementary guide from the expert advice given to you by your realtor and attorney.]

Getting Started

1. Savings
   1. Despite what you read about "no money down" purchases, the execution of every deal needs to be funded.
   2. Determine how much you will need to afford to buy your home. (You need the down payment, closing costs and a reserved amount for emergencies.)
   3. Make sure you properly budget your monthly income and expenses in order to reach your financial goal.
2. Credit
   1. Most first time homebuyers will need to get a mortgage, which means you will have to borrow most of the money from a lending institution that will check your credit and verify your funds.
   2. You can order your credit report and score from each of the three credit bureaus: Experian, Equifax and TransUnion.
   3. Once you assess your credit standing, you can take the necessary steps to improve it. Whether it's paying off credit cards or disputing an error, the higher your credit score, the better terms you can get on a loan.

Finding Your Home

1. Get a Realtor
   1. Realtors are experts who help people search for homes. If you have a full-time job and perhaps a family, you may not have the expertise or time to find a house on your own.
   2. Determine your price range and an area where you would like to reside.
   3. Find a realtor that knows your desired neighborhood.
   4. Your realtor will then narrow down your choices to meet your expectations.
2. Making An Offer
   1. Work with your realtor to determine the fair market value (FMV) of the house. Regardless of how much you love the house, never overpay for it.
   2. Your first offer should be lower than the FMV.
   3. Once you and the seller agree on a price, you will consent to an agreement.

The Contract

1. Reading your contract
   1. Most real estate contracts are standard and based on the state of purchase.
   2. Your realtor or attorney should answer your contractual questions.
2. Contingencies
   1. To protect yourself, every buyer should have two major contingencies in their contract:
      1. Home Inspection
         1. This allows you to get a home inspection a few days after the contract is signed.
         2. Contact a local home inspector (preferably a referral) with experience in the area.
         3. If the inspector finds something faulty, you can negotiate new terms with the seller.
         4. If the seller won't comply, your contingency will allow you to opt out of the contract without being penalized.
      2. Mortgage
         1. You can put a maximum on the interest rate you are willing to accept from your lending institution. For example, if your set rate is 6% and you only quality for a 6.1% rate, you can opt out of the contact without being penalized.

Buying Your House

1. Getting a Mortgage
   1. Once the contract stage is in order, your next step is to find a mortgage.
   2. Do your own research and get referrals. Compare rates between competing lending institutions.
   3. Once you find a mortgage broker or bank, they will take you through the application process. The best agents are the ones that explain each step in detail and answer all of your questions thoroughly.
2. Insurance
   1. Whenever you get a mortgage, you will need to get a homeowner's insurance policy.
   2. Use referrals to find the best insurance policy. (Start with the company that you get your car insurance from, you might get a discount).
   3. The agent will walk you through the best policies and terms.
3. Title Company/ Closing Agent
   1. Your realtor or attorney will be in charge of the closing procedure.
   2. As the buyer, you can choose which company/agent you want to facilitate the closing.

The Closing

1. Final Walkthrough
   1. You and your realtor should walk through the entire house once more before heading to closing.
   2. If there are any changes (i.e. broken window, leak in bathroom sink), make a note of it. You may be able to negotiate a lower purchase price at closing.
2. Signing Contracts
   1. Your realtor and mortgage broker should explain all the terms on the contract(s).
   2. Make sure you and your realtor thoroughly review the HUD sheet, which itemizes all of your expenses.
3. Keys
   1. After all the documents are signed, the money is wired to the seller and you receive the keys to your brand new house!