Home Buyers Timeline

In the overall turmoil of buying a house you can find yourself confused, overwhelmed and lost in the onslaught of activity and information. Being aware of the general sequence of events can ease the anxiety of purchasing a home.

The road to home ownership takes many paths and each is as distinct as the prospective home buyer. As a result, there is no absolute timeline because it will differ for each situation. The following is a checklist of general guidelines and a sample timeline of things to remember when planning your home purchase.

Before you begin your home search:

• Analyze your current financial situation.
• Keep your spending patterns in check.
• Pay off minor debts if it does not adversely affect saving for your down payment.
• Save money whenever possible for a down payment.
• Think about the price range you want to buy in and how it will affect your monthly budget.
• Obtain a copy of your credit report to ensure there are no discrepancies or problems in your credit history.
• Review the document checklist provided by your mortgage broker or lender and prepare for a mortgage pre-approval application.
• Shop around for area mortgage lenders using a mortgage comparison chart to keep track of what each lender offers.
• Finalize your decision to work with a lender and make a formal application for mortgage pre-approval from that lender.
• Update your documents compiled from the document checklist and take them with your application for pre-approval.
• Upon loan approval, obtain a written mortgage approval letter from your lender stating the maximum sales price you can afford.
• If you have trouble obtaining financing approval, work with your lender or a housing counseling provider to find out the reason and develop a game plan to position yourself for loan approval.
• Make the decision to purchase or build a home.

When you find a house:

• Make an offer.
• Title search -- the buyer or the lender should initiate a title search. You want to be sure there are no liens or encumbrances on the property.
• Inspection: the real estate agent will recommend having a home inspection.
• The lender will hire an appraiser. This will ascertain whether the house is worth what the buyer is paying.
• Get homeowners insurance. Proof of insurance will be faxed to the closing agent.
• Consider a home warranty. It either comes with the listing or it can be purchased.
• Be prepared for closing. Review your paperwork and the HUD publication "Your Settlement Costs." The down payment, interest, taxes and insurance are among the costs you'll probably have to pay.
• Cash to close -- figure out where you'll get the money for closing costs. Do you have to sell stocks? If you're borrowing from a relative make sure the check is in your account long enough to clear.
• Get a cashier's check for closing costs.

6 Months Out:

• Narrow your territory. Buyers generally buy town first, neighborhood second, house third. Cancel out the towns and neighborhoods you don't care for. You can do this on your own or with a one-time area tour with an agent. You're eliminating what you don't want.
• Know your financial situation. Get a credit check. Leave yourself plenty of time time to correct any problems.
• Determine how much house you can afford. This is just for your own use. The mortgage lender will also make this determination at a later point.
• Think about your budget and structure your home selection around that. Should you be looking at a townhouse or a single-family, a place in the suburbs or a little farther out?
• Interview real estate agents to help you with your search.

4 Months Out:

• Select a mortgage broker or a mortgage lender. They'll run your credit and get preliminary information such as bank statements and retirement and investment account numbers.
• Talk with your bank or mortgage company. Double-check your buying power. You don't want to waste time looking at homes you can't afford.
• Get pre-approved for a mortgage. Make an application. Collect the required documents and paperwork. Have a mortgage just waiting for the address of the property you want to buy.
• Here is a list of questions to ask when applying for a mortgage.
• Your lender should give you a copy of a Housing and Urban Development publication called "Your Settlement Costs." It explains all the fees and expenses you should know about.
• Make sure you have a local real estate attorney. Don't wait until you find a house to find an attorney.

6 Weeks Out:

• If you're doing a corporate relocation, find out exactly what is covered and what you're expected to do.
• Make a list of everyone who needs to be notified of the move -- friends, relatives, creditors, schools, doctors and dentists.

5 Weeks Out:

• Select a mover. Arrange for a storage facility if you won't be moving into a new home right away after you leave your current home.
• Contact insurance companies to make sure your belongings are covered during the move. If not, find out what the mover covers. Their basic insurance probably insures items by the pound, which isn't good enough. See what other insurance they offer.
• Have an appraisal of expensive items you want shipped by the mover.

2 Weeks Out:

• Arrange to have utilities and phone service in your old home shut off, or transferred if it's a local move. Remember, movers need light so have the power cut off the day after you move.

1 Week Out:

• Close safe-deposit box. Important papers, jewelry and the like should be kept with you during the move.
• You may want to close savings accounts, but keep checking accounts open until you're able to open new ones in your new location.
• Get a cashier's check for the movers.

Closing Day/Moving Day:

• Carefully review the bill of lading.
• If the old house isn't sold yet, make sure a relative and the real estate agent have keys.
• Final walk through of the house. This is usually done the day of the closing or the day before.
• Make sure you have all the payments you'll need to take possession of the house.

If you have any questions or need assistance please call 1-800-351-4195 and speak with a Certified Housing Counselor.