How to Buy a House in a Million Easy Steps

Okay, perhaps not a million steps--but buying a house is a complicated process, and sometimes it seems like a million steps are involved. The first step is to meet with a lender to get prequalified or, better yet, preapproved (ask your lender about the difference). The next step, I would suggest, is to find a Realtor* to assist you.

What is a Realtor?

Anyone who passes their state's real estate exam becomes a real estate agent, or licensee. A real estate agent is a Realtor only when he or she becomes a member of the National Association of Realtors, the world's largest professional association. The term Realtor is a registered collective membership mark that identifies a real estate professional who is an NAR member and who subscribes to its strict Code of Ethics. Working with a Realtor is your best guarantee of receiving the most professional service.

In any real estate transaction, a Realtor acts much as the general of an army or captain of a ship. He or she will help coordinate the activities of your lender, inspectors, appraisers, the sellers and their agents, title companies and closing companies. You want to make sure you have someone on your side who can manage the complexities of even the simplest transaction.

How do I choose a Realtor?

The best way to find a Realtor to work with is to ask your friends. A personal recommendation provides fair assurance, but no guarantee, that a competent professional will be assisting you. I say it's no guarantee for good reason: while it is essential that you trust and feel completely comfortable with the person you're working with, that obviously can be different from person to person. A Realtor that did a great job for your boss or cousin may just not click with you, and that's fine.

Some Realtors specialize in a particular market niche, so you might ask around for someone who specializes in working with first-time home buyers, or horse properties, or fixer-uppers if that's what you're after.