Real Estate Survival Guide: Buyer's Checklist

1. Figure out how much house you can afford.

• Calculate your monthly income and debt.
• Check your credit report and FICO score.
• Use FrontDoor's mortgage calculator.
• Figure out your down payment.

2. Get pre-approved for a mortgage.

• Choose a type of mortgage.
• Speak to at least five lenders and mortgage brokers.
• Shop for the best interest rates and programs.

3. Determine what you want and need in a home.

• Choose a location (downtown, urban, suburban, rural).
• Choose a type (single family, townhouse, condo, loft).
• Choose a price range.
• Choose a size.
• Choose an architectural style.

4. Research your target neighborhoods.

• Look online for information on schools, crime rate, traffic and zoning.
• Determine your work commute.
• Scout local amenities, such as parks, shops and restaurants.

5. Work with a buyer's agent who knows the neighborhood.

• Get referrals.
• Consider working with an exclusive buyer's agent.
• Interview at least three agents.
• Look for experience and good chemistry.

6. Search for homes in the MLS and For Sale By Owner (FSBO).

• Browse listings online, including FrontDoor.com.
• Ask your agent to set up tours of homes that fit your criteria.
• Check local newspapers.
• Pick up flyers and attend open houses.

7. Research each home you want to buy.

• Ask your agent for comps to estimate the property's fair market value.
• Ask the seller's reason for selling.
• Review all property disclosures.
• Find out about liens, easements or other restrictions.

8. Make an offer and negotiate.

• Determine the purchase price.
• Include contingencies, such as financial, inspection or purchase.
• Spell out any special requests and repairs you want included in the sale.
• Determine an earnest money amount.
• Define a move-in date.
• Once both parties agree to the terms, sign the Purchase and Sale Agreement.

9. Finalize the deal.

• Get the house appraised.
• Get a professional home inspection.
• Consider getting specific inspections for structural engineering, roof and termites.
• Use the appraisal and inspection reports to re-negotiate if necessary.
• Choose a home insurance company.
• Complete the loan process with the lender.
• Do a walk-through inspection prior to closing.
• Set aside cash for the closing costs and down payment.

10. Close the purchase.

• Review the settlement document at least 2 days before closing to see how funds will be collected and distributed.
• Get a cashier's check for the amount you need to bring to closing, including the down payment and closing costs.