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1. SET A PRICE RANGE
   
   First you must determine how much you can afford to pay in monthly installments. First Horizon can help. They will examine your debt/income ratio and credit score to determine what you can afford to spend on a house.
   
   
2. GET PRE-APPROVED FOR A LOAN
   
   First Horizon will determine the size of mortgage for which you can qualify. They also issue a "pre-approval letter" which signals to sellers that you are someone who is prepared to buy. Obsidian Realty will help you research government sites such as HUD to find larger mortgages and better rates.
   
   
3. HIRE A REALTOR
   
   Obsidian Realty is your most valuable resource. They are better positioned to network with other agents in the area you want to buy. Contrary to popular belief, less than 10 percent of homes are actually sold to unrepresented buyers through a newspaper ad or open house. The other 90 percent are sold to buyers represented by a real estate agent. Obsidian can be involved as little or as much as you need them to be, but is available to communicate with listing agents and guide you through negotiations. Both the seller's agent and the buyer's agent commissions are paid by the seller.
   
   
4. SIGN A BUYER'S AGREEMENT
   
   Once you find an agent that is right for you, sign a buyer's representation agreement. This agreement means that you will have one agent representing you as a buyer. The agreement empowers the agent to not only search out the latest Multiple Listing Service list, but to seek alternative means of finding you a home, including searching foreclosures and homes for sale by owner. With a signed agreement, the agent becomes a fiduciary and must act, by law, in your best interests.
   
   
5. DEVELOP SEARCH CRITERIA
   
   As you shop for homes, be open with your agent as to what you like and dislike. You should feel comfortable in looking at as many homes as you have to. However, there is no reason to view homes that are simply not right for you. Develop search criteria based on size, value, neighborhood, etc. and only view homes that meet these criteria. Staying within these parameters, it shouldn't be long before you find the right home. Don't let cosmetic or minor remodeling problems discourage you. Many remodeling jobs add tremendous value to a home. If you remodel a kitchen, for example, you may receive as much as a 128 percent return on your investment. Talk with your agent, friends, and contractors and find out what it will cost to remodel the home the way you want it.
   
   
6. WRITE A CONTRACT
   
   When you find the home you want, Obsidian Realty will guide you trough the contract process. The offer should spell out what you are willing to pay for and what you are not, when you want to close, and when you want to take possession of the home. The contract should be contingent upon getting an inspection and evaluating the results. If the inspection reveals any problems, Obsidian can renegotiate the purchase price with the seller if you are still interested in buying.
   
   
7. PROCESS THE LOAN
   
   If the seller agrees to the contract, you must follow through on your loan. Take the contract to First Horizon to begin the loan process. If you have been pre-approved, you’re already halfway there; the loan will quickly process.
   
   
8. HOME APPRAISAL
   
   First Horizon will order an appraisal on your behalf and add this fee as a pre-paid expense or collect the fee at settlement. The appraisal value will affect whether the loan is granted and determine your loan to value percentage. If the house is appraised for less than the contract price, the lender will not fund the entire amount and it is up to you to cover the difference. Obsidian can always renegotiate with the seller for a reduced amount or you can be released from the contract based on your finance contingency terms.
   
   
9. HOME INSPECTION
   
   It is imperative that as a first time home buyer that you have a home inspection after the contract is signed, rather than before. This protects you, the buyer. The inspection can reveal major problems, even issues with the foundation. Something of that nature must be fixed or the home cannot be conveyed. The results of the inspection are reviewed and the buyer requests that the seller repair or replace the damaged items prior to settlement. In some cases, the seller will offer a credit in lieu of repairs or negotiate which repairs he/she will make. Prior to settlement Obsidian Realty will walk you through the property in order to approve the repairs. If items, like electrical re-wiring, that are not visible to you, the buyer, your agent will request a copy of the receipt of completed work.
   
   
10. FURTHER NEGOTIATIONS BEFORE MOVE-IN
    
    Even with a packed moving truck with keys in the ignition, things could still change. Negotiations continue upon reevaluating the inspection report - you discover that the chandelier you loved wasn’t included in the contract.
    
    
11. CLOSING -- BE PREPARED FOR ANYTHING TO HAPPEN
    
    Anything can happen up to, even during, the settlement. A glitch in your credit report could delay the sale, the owner did not repair a problem that was her responsibility, the owner can decides that she doesn't want to pay for the home warranty; the appraisal may come in late and be short of the asking price, etc. Obsidian Realty will be there to help handle any last-minute problems.
    
    
12. YOU GET THE KEYS
    
    It's all over. The home is yours. Congratulations.
    
    

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