1) How much can you afford? The first step towards homeownership is know exactly what you can afford. Go to a reputable loan officer or consultant, take the steps necessary to get pre-approved. There are programs available to first time homebuyers and low income individuals that help pay the downpayment and closing costs.

Sometimes, when our credit gets pulled, we get unexpected,nasty surprises. You may find inadvertent inaccuracies or outright identity theft. It may take awhile to clear our credit in order to buy the home of our dreams. In the end, a pre-approved buyer has a much stronger negotiating position with a seller because they are ready,willing and able to get a loan.

2) Get a Realtor to represent you. Not all licensed real estate agents are Realtors. Realtors are bound by their code of ethics to treat you honestly, fairly and to act in your best interests.

 3) So you found the home of your dreams- Did you read the MLS listing sheet and thought everything had to be true and accurate? While that should be the case but any information you deem important,you should verify, as the information may be incomplete or an approximation. A listing is an agreement between the seller and the listing agent and authorizes the listing agent to submit information to the Multiple Listing Service ("MLS"). The MLS print out is similar to an advertisement and contains various abbreviations and symbols. Neither the listing agreement nor the MLS print out are a part of the purchase contract between the buyer and seller. The MLS print out contains limited description of a property, such as its size, encumbrances, utilities, amenities, etc. The information was probably secured from the seller, builder or a governmental agency and may be inaccurate.

4) Next, Sellers are required by law to provide certain information and documentation. They are required by law to disclose any adverse condition that may affect the property. In the state of Tennessee, a Tn Residential Property Disclosure or Exemption is required for all homes*.This document will cover a variety of questions for the seller to answer about the property and its condition. A buyer should carefully review it and verify those statements of concern. Read the seller's property disclosure report, and check every item on it. Ask to see receipts for repairs to the home. Look behind large pictures on the wall and behind anything on the floor which conceals large areas of the wall. Look for stains on the ceilings or carpets that might indicate water damage. Remember, your review of the Property Disclosure is not a substitute for professional inspections.

*Additional reports//disclosures that may be required include: termite, radon, lead, mold, septic or structural (& possibly others as well).

5) Check to see the covenants and restrictions on the property or if a property is part of a homeowners association. For example, If you are looking at a 5 acre tract with a home on it with express purpose of having horse or chickens,there may be a restriction prohibiting the keeping of such animals on the property. A homeowners association may have rules, for example, that govern whether you can have a child's playground, fly an American flag,whether you can park your rv, or have an individual choice of mailbox just to name a few. If you do not view these covenants or restrictions ahead of making an offer to purchase, make sure that you make it a contingency to view & approve these documents before your offer is bound & becomes a contract.

6) Ask for a home inspection of the property. Make sure this and repairs(If the amount to correct the defects exceed the monetary limit on repairs, buyer needs to have the option to walk away ) are in the offer to purchase. While a home inspector cannot see hidden defects, he will look at the systems in the home to see if they are functioning correctly. After the inspection, the home inspector will generally provide the buyer with a report detailing information about the home’s condition. The inspector and the report will point out problems and possible potential problems. The buyer should carefully review this report with the inspector and ask the inspector about any item of concern. Pay attention to the scope of the inspection and any portions of the property excluded from the inspection.  

7) If you are concerned that the currently operable home systems may fail in the near future, you, the buyer may request a home warranty. This must be done in the offer to purchase. Sometimes the seller will even pay for it.

8)Your loan officer will order an appraisal on the home you are purchasing.

9) If all goes well, you should be ready to close now. Needed repairs have been made, you've done your final walkthrough,you've hired a title attorney/closing company, your loan is through underwriting and you have a clear to close. The loan officer will tell you what to bring to your closing. You arrive at the closing, go over the HUD-1( the document that explains in detail all the financial particulars concerning your purchase). You sign all the necessary loan documents. Congratulations, you have bought a home.

10) In about 20-25 days, a policy for your title insurance should arrive in the mail. Keep this document in a safe place with other important documents.