Refer to this 10-step checklist to get you through the homebuying process.
1. Figure out how much house you can afford.
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Calculate your monthly income and debt.
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Check your credit report and FICO score.
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Use FrontDoor’s mortgage calculator.
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Figure out your down payment.
2. Get pre-approved for a mortgage.
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Choose a type of mortgage.
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Speak to at least five lenders and mortgage brokers.
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Shop for the best interest rates and programs.
3. Determine what you want and need in a home.
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Choose a location (downtown, urban, suburban, rural).
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Choose a type (single family, townhouse, condo, loft).
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Choose a price range.
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Choose a size.
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Choose an architectural style.
4. Research your target neighborhoods.
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Look online for information on schools, crime rate, traffic and zoning.
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Determine your work commute.
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Scout local amenities, such as parks, shops and restaurants.
5. Work with a buyer’s agent who knows the neighborhood.
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Get referrals.
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Consider working with an exclusive buyer’s agent.
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Interview at least three agents.
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Look for experience and good chemistry.
6. Search for homes in the MLS and For Sale By Owner (FSBO).
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Browse listings online, including FrontDoor.com.
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Ask your agent to set up tours of homes that fit your criteria.
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Check local newspapers.
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Pick up flyers and attend open houses.
7. Research each home you want to buy.
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Ask your agent for comps to estimate the property’s fair market value.
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Ask the seller’s reason for selling.
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Review all property disclosures.
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Find out about liens, easements or other restrictions.
8. Make an offer and negotiate.
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Determine the purchase price.
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Include contingencies, such as financial, inspection or purchase.
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Spell out any special requests and repairs you want included in the sale.
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Determine an earnest money amount.
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Define a move-in date.
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Once both parties agree to the terms, sign the Purchase and Sale Agreement.
9. Finalize the deal.
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Get the house appraised.
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Get a professional home inspection.
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Consider getting specific inspections for structural engineering, roof and termites.
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Use the appraisal and inspection reports to re-negotiate if necessary.
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Choose a home insurance company.
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Complete the loan process with the lender.
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Do a walk-through inspection prior to closing.
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Set aside cash for the closing costs and down payment.
10. Close the purchase.
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Review the settlement document at least 2 days before closing to see how funds will be collected and distributed.
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Get a cashier’s check for the amount you need to bring to closing, including the down payment and closing costs.