When the time has come for you to stop paying rent and start making a monthly payment on a home, then you should be aware of the basic steps. Here are the steps you should take into consideration when you are buying a home.

First, get a copy of your credit report. Before buying a home, you want to do all you can to clean up your credit report. This will be important when it is time to get a loan from the bank.

Second, go to your bank. Talk to a loan officer and tell them you want to buy a home. They will have you fill out an application and a Pre-Qual Letter. In most cases, you will have to pay an application fee of $40 or so to the bank for processing fees.

Third, find a realtor. The seller pays the commission to your realtor, so it costs you nothing to have one.

A Realtor can be beneficial because they serve you by letting you know what houses are available that can meet your needs and answer your questions about the process.

In theory a Realtor should also help you get the best price. If the Realtor is compensated based on commission you may not get the best price on the home, because the more the house is sold for the more Realtor makes in commission.

Make sure you choose your Realtor wisely and ask opinions from friends and family before settling on one.

Fourth, tell the Realtor the things that you are looking for in your potential house. This is a fun part of the process.

You decide on what part of town you want to live in, what style of house you want, how much you are able to spend on the home, and any other features that are important to you. Then, your Realtor will compile a list of houses that match your criteria.

After receiving the list of homes you can go take tours of the actual homes. Walk through them and decide if you want to purchase it or not.

Fifth, when you have found a house you want, get the Disclosure from the seller. This is a list of problems with the house that the seller already knows about. The disclosure must be given to you by law.

If after seeing the Disclosure you still want to purchase the house you get to determine how much money you are willing offer on the home. Most do not accept the original price given by the seller, generally the offer is slightly less than they’re asking.

Get a list of comparables, or similar homes that have sold recently in the same area, from your Realtor so you can get an idea of how much the house is really worth.

Sixth, make an offer on the home. Making an offer means signing a contract. If the seller accepts your offer then they’ll sign too.

At this point you’re generally required to buy the house and the seller is generally required to sell, though depending on the wording of the contract both of you may have the right to walk away from the deal under certain circumstances.

Seventh, have the house professionally inspected. You generally have to pay extra for this. Generally it will cost $350 or so.

If the inspection reveals problems that are not listed on the disclosure you can try to get the seller to lower the price or fix the problems before the sale, or you can walk away from the deal if your contract allows and you feel that it is best.

Eighth, the bank will have the house appraised to make sure it’s worth what you’re paying for it. You might have to pay this up front; otherwise it will be added to your closing costs.

Ninth, find an insurance agent and get a quote on homeowners insurance. It is highly recommended that you price shop. Pick whatever insurance policy fits your needs best.

The cost of the insurance will be added to your closing costs, so you don’t have to pay this at the current time, but keep in mind that you will need to pay later.

Tenth, this is when you actually close on your home. Meet with the title company or an attorney, usually selected by the lender or the seller that is closing on the home. This company will help you with the paperwork.

You’ll owe some money at this time, including the down payment and closing costs unless you got those rolled into the mortgage. Arrange with your bank to wire the funds to the closing company or bring a check with you to the closing meeting.

You don’t need to get a check for the mortgage loan. The bank will wire that directly to the office that is handling the closing.

Currently, it is a good time to purchase real estate. A great place to buy real estate right now is in Discovery Bay, California.

Real estate purchasing here is steadily on the rise. Real estate prices will continue to rise, making this real estate an investment.