For more info on this topic refer to Mortgage selection and choosing service providers.

     So you have heard all the hype about home buying and how you can own a home for no money. Not entirely true and it does have its drawbacks along the way. This will give you an outline along the way of what to expect.
     Your first choice is the agent. It may not be necessary to find an agent with a million years of experience, though some seasoning is good, some newer agents are anxious to build their business and provide great service. You will be relying on the agent for finding the home, helping you find the right mortgage company to fit your needs, choosing inspectors and attorneys and making sure you do not pay too much for the home. A great agent will also let you know when you could be in trouble on your contract, make sure you stay on course and even sometimes, talk you out of a home if there are danger signs. You should interview the agent so you feel comfortable with their style and background and even ask for references. I strongly suggest an agent who is full time. Why? Along the way, you will have showings, home inspections, closings and a list of duties that are not always at convenient times. Having someone in the business that is available for all of these things is crucial and can take stress away from you.
     My feeling is that you don’t need a buyer’s agent to talk you into a home; you already know what you want. You need a guide through the process, especially to let you know how much money it really takes to make the purchase possible and what negotiation steps can save you money and protect your interest.
     No one should be intimidated by the buyer agency agreement. It ensures that you are the one being represented in the transaction. What many don’t realize is that you can sign up for one hour, one day, one house or one year. You can sign a short term agreement to make sure you are comfortable with the agent and then when you believe the agent has your best interests in mind, sign up for a longer time.
     Your first meeting with the agent should be a discussion on mortgage selection. Depending on money down, income, short term or long term possession, investment or your personal property, all mortgage options are not created equal as are the expertise of all mortgage officers. Finding out what you are qualified for, helps you shop confidently knowing what the payments will be and gives the agent the info to set up the search requirements.(see mortgage selection) Most mortgage pre qualifications can be done over the phone and maybe even at your meeting. AN IMPORTANT NOTE-don’t buy a car, change jobs, add to your debt, etc. during the home buying process without discussing it with the mortgage rep. A car loan or other debt can lower your buying power by tens of thousands of dollars! If done while the contract on the home is in process, it can disqualify you. After you’re comfortable with what you can afford, you can move on to home selection.
     A buyer agent cannot tell you where to live. We are bound by laws designed to protect the public from steering people into areas and are limited in our ability to recommend areas. In this website there are links to town profiles to help you make your decision. If you are concerned about crime, you may contact the police department about crime in a particular area. There is a website to check on addresses of sex offenders. There are web sites as well on schools. We can point you to these web sites, but cannot give our opinion on these topics. We can and should let you know about the values in the area you are considering, as well as any impending changes in the neighborhood that are factual. On any home you choose we will provide you with a market analysis of the home, comparing it to other homes that sold in the neighborhood over the last 3 -6 months and adjusting the value for differences in bedrooms/baths, garages, acreage, fireplaces etc., to ensure you are paying a fair price for the home. It is the same service we provide to sellers when they are selling their home. The analysis should be of homes directly in that neighborhood whenever possible as in certain towns, values change greatly from neighborhood to neighborhood, sometimes in the space of just a block or two! I am sure you have heard that the top 3 important things is location, location and location. There is no doubt that is true. You must consider your current lifestyle as well as your future lifestyle (retirement, children, hobbies etc.) when selecting an area.
     You have now selected a few homes and are set up to receive updates on new homes and price reductions. The shopping begins. We always need at least one day notice to set up showings, more on multi family homes. The agent needs to set up with the other agent to get the ok to show a home. Also remember that everyone is on a schedule. The other agent needs to be there on some showings, the home owner has cleared out with the kids and pets and you have homes to see behind your first home that also need to stay on schedule. It is important to stay on course and on time. Also bring a notepad or write notes on the listing sheet on what you like or didn’t like about a home and questions to ask the home owner. After seeing a few homes in one day, it all may blend in together. I highly recommend not seeing more than 4 or 5 homes in a day, especially if traveling with children. When looking at the home, take a quiet moment in bedrooms, the yard and other areas of the home to listen for outside noises and the surroundings that you may overlook if everyone is talking or you are enchanted with the home itself. The agent should be looking for items as well, that you may overlook including maintenance items such as the roof, boiler, etc. . . . The agent is not and cannot act as an inspector, but should be looking out for things that are potential problems. After each home, compare notes with agent on the items you liked and didn’t like. This will help the agent identify other homes he or she knows of, that might be to your liking. Remember that you can always and should always come back to a home you like to look at it more carefully before putting in an offer. This allows you to look more closely at items you may have missed on your first visit.
     Now, you have selected your favorite and the work truly begins. The agent will do the market analysis and determine what the fair price is for the property. You decide what offer will be put in based on your situation and feelings. The mortgage company prepares a pre qual or pre-approval letter that must be presented with your offer. The letter should include the address, but not your full approval price as this will give your hand away in negotiations. Here is where the agent is really worth his or her weight. The contract. It needs to be specific in what inspections and when. What type of financing and when will the inspections be and what type of inspections are necessary for that property. Is there a specific item in that property including the shed, that needs to convey? What is the highest interest rate you are willing to pay on the mortgage? How long before you will make formal mortgage application? What are your outs on the contract if the situation changes? Who will be paying for sewer assessments? How much will the deposit be? (More on this in the next paragraph) When is the closing date? All of this information is important as the seller has to weigh this out in determining your offer and how it fits into their game plan. Sometimes if the terms are right a seller may be willing to accept less if your closing date or other terms make the transaction more palatable for them. Never leave anything to chance. A contract is very important and all terms must be spelled out. The agent should go over all risks that are involved in the contract, including any risk to your deposit. (It should be very minimal especially if you follow your side of the deal).
     Expect to spend at least one hour on the contract and do have a check for deposit with you. This check is not cashed unless the contract is accepted. The buyers agents’ job is to present the contract with the least amount of deposit possible to get the seller to accept. It multiple offer situations, you may want to put more up front to show you are a serious buyer that can get the deal done. In my opinion as a buyers agent, an extravagant deposit is not really necessary. This money sits in a non interest bearing account, which nobody benefits from. Deals in New London County have been sealed on $100 deposits, however on the other side of the river, in Middlesex County and beyond, agents normally press for a large deposit. In general a one percent deposit is usually acceptable, however in a CHFA,DAP, VA loan scenario, you may be operating with limited funds and may need the funds for home inspections, and upfront bank fees such as appraisal and application fees so be sure to know what money you will need along the way.
     You also need to know it is not a deal until you have a signed contract by both the buyer and the seller, with all changes initialed by both parties. When the market was hot, it was not unusual to get a call from the other agent after a verbal acceptance that another offer came in and you were now in a multiple offer situation. When the signed contract is in hand, it is your turn now to live up to your side of the deal within the guidelines that were specified in the contract. A good agent will get those lined up immediately.
     Your inspections need to be scheduled. You will double check with the mortgage company or bank that the rates are what you expected and may still do some last minute shopping on the rates. You will set up a formal application meeting with the bank. You usually have 5 days from the date of contract to make formal application. Your attorney should be selected based on the bank you selected and if the attorney is on their approved list. Then, we go on to the home inspection. The home inspector is paid on the spot and is one of the expense items you will not recover if the deal falls apart.
     The home inspection is designed to find major flaws, structural defects and safety items in a home. It is not to pick out cosmetic items. There are little guidelines on what is major, so it is both parties using common sense. Termites, radon levels, roof, boiler, electrical, water quality, and performance of appliances are some examples of major problems. A scratch on a wall and the color of the stove are not. All of the inspectors will provide you with a detailed list of the problems in the home and you may determine which ones you find acceptable and which ones you will ask the seller to repair. You will prepare a letter to the seller within 5 days of the inspection, outlining the items you wish to have fixed and provide the report from the inspector outlining the problem. You should be specific on your request for repair. For example:” replace roof.” Instead “A licensed contractor will be hired by the seller to remove old shingles on the roof, repair any damaged wood, and replace with a 30 year architectural shingle, the color to be determined by the buyer. Under the “replace roof” request, you can imagine what you will end up with.
     The seller has 5 days to respond to your requests. If the 2 parties cannot reach an agreement for repairs, then both parties sign a release and the deposit should be returned. It is not unusual for a seller to offer cash back either from the sales price or paying closing costs in lieu of the actual repair. In either case you need to check that the deal is ok with the mortgage company as many mortgages have a limit as to how much can be seller contribution or in the case of government loans, some of the repairs may be required by the lender as a condition of closing. Deep breath now, we are almost there.
     During the time all of this has gone on, the bank has sent an appraiser to the property to determine value. This should not be an issue as they use the same guidelines, generally speaking that your agent used in determining value. If the home doesn’t appraise however, the buyer will either have to come up with additional funds for the difference or the seller will need to lower the price. All these guidelines are covered in the mortgage contingency clause of the contract. On some loans, especially government loans, the lender has the appraiser do a visual inspection of the property to ensure the building lives up to the loans guidelines. It is not a building inspection and should not be used as a substitute for a building inspection. The appraiser will give their report to the bank anywhere from 3 -5 days after the appraisal. The buyer is entitled to a copy of the report and is usually provided with a copy at closing. The seller is not provided with the report and usually the agents will not get a copy either. When the bank is satisfied with the appraisal and you have submitted them with the 8,000 documents they asked you for , including a blood test,  (just kidding about the blood test) you will be provided with a commitment letter which is passed onto the sellers agent to ensure them that all has gone well.
     Meanwhile, your attorney has either performed or hired a company to perform a title search on the property. The title search checks back through the town hall records for decades (I am not kidding on that one) to see if there are any liens on the property, claims against current owners on the property, easements that effect the value of the property, right to life uses etc., to ensure the title to the property is clean. You may think it is to protect you, but in actuality the bank wants to make sure their interest is protected. The attorney will offer you title insurance to protect your interest in the property as well and you should converse with the attorney ahead of time on whether or not you need it. Some homes, especially foreclosed homes and estates are begging to be covered. Be aware that the majority of the premium for the title insurance does go to the attorney. The good attorneys carefully explain all aspects of the title insurance to you, and it is important.
     When all this is done, the bank issues what is called a “clear to close” meaning the bank is standing by with the funds. You will need to supply the bank with your homeowners insurance policy, showing it paid for one year with the lender noted as covered by the policy. Do not wait til the last moment for this. Do your shopping, compare rates and coverage. They vary greatly. While not always providing the best deals, I like to start with brokers that represent many insurance companies, however your current car insurance company may provide discounts as well for having multiple policies with them.
     At this time it is safe to set up utilities, to include water and sewer, electric, cable, phone, satellite etc. . . . In some areas and with some attorneys, they arrange for the water reading. It is best to clarify that with the attorneys office. The attorneys office will normally be the one to give you the amount you need for the closing, usually the day before the closing. They must be in certified funds with the check normally being made out to you and signed over to the attorney at closing.
     The attorneys, in coordination with you and the agents will set up a closing date and time and surprisingly it is often the date spelled out in the contract. You will need time before the closing for the walk through of the property. The walk through insures that all agreed upon repairs have been done in a satisfactory manner, all the appliances you have in the contract are still there, the property was left in the condition promised, and you will normally look at what the fuel levels are that you will be charged with at the closing, such as oil or propane. It is not unusual to discover a problem at the walk through and some harried calls are usually made to smooth out issues at this time, usually between the attorneys. There have also been instances when the seller isn’t moved out yet, which really creates a problem and some animated conversations.
     At the closing you will need your certified check, a personal check to cover any items the attorney might have missed (usually minimal) in the original closing statement and to cover fuel that the seller has left, if not covered in the closing statement and a drivers license of any one on the mortgage. You may also have to bring any document the bank has not collected from you previously and are necessary for the closing.
     The stack of documents is mind boggling and even has some forms that make you sign saying you are who you say you are. The important parts are, if the payment and the rate is what you were quoted. The fees are what you were quoted. The terms of the loan including, no prepayment penalty, no balloon payment etc. were what you expected. Other than that most of the forms are preprinted gobbledegook.
     Now you get your keys!
     As you can tell it’s a long process, though with the right agent, who you noticed was along with all the steps with you, you can get to the closing safely and move into the home you wanted. With all these steps, it is why I recommend using a full time agent to assist you in the process. I am sure there is some info missing in here somewhere, as it is impossible to cover all of the different unique circumstances that occur in the home buying process. This will hopefully give you an idea what to expect along the way. Don’t forget to read the other informational topics that apply, that are also on the web site and good luck in your search for the dream home.