To commit to an Agent might just mean that the Buyer will sign an Exclusive Agency Agreement. This will assure you of getting the very best service from your Agent. An Agent will generally not work with any other person in competition for the same kind of home you are interested in with this type of agreement.

By agreement Agent or Buyer may choose to do more or less than indicated here.

Often, these first three parts of the process are occurring simultaneously, or nearly so.

I suggest that you at least investigate the referral names your chosen agent has given to you. Agents have experience working with many lenders and direct you toward lenders that are competitive, trustworthy and efficient. Agents have endured nightmare transactions with buyers who have chosen a lender based on lowest advertised rates but are unable to perform.

A proven track record makes for a smooth and successful closing.

Sometimes an Agent will push a Buyer to make a decision before the Buyer feels comfortable doing so. On the other hand, sometimes the Agent misses buying signs and fails to ask the Buyer if they wish to make an offer. As a Buyer, speak up when you find a home that meets your needs. A home will feel right to you for reasons that are unknown to anyone else. You should also resist when you feel that the home is not right for you.

Once you have decided to proceed it will probably take one to three hours to write the offer. Discussions will include all of the offer's terms and the nuances of choosing one type of inspection over another, the significance of closing and possession dates to the Buyer and the Seller, the earnest money amount and disposition, and various contingencies involving insurance, title, local city and county ordinances, hazardous materials, questionable building products, neighborhood issues, schools, taxes, and any number of other personal concerns.

The Agent will generally deliver the offer to the Seller's Agent, or present it in person to the Seller and Seller's Agent. This presentation can take anywhere from one hour to several hours and is often scheduled for a certain date so that the Seller may view several offers at one time and make his decisions based on what he has in hand at that time.

In the case of multiple offers, the Seller is free to select an offer he wishes to negotiate with. It may not be the highest price offer, but will be an offer he feels most comfortable with. A Buyer should not just make any offer and expect that the Seller will ask everyone if they want to do better.

A Buyer should allow time to strategize with his Agent.

The inspection period is often the most stressful part of a transaction. The Seller feels that they have negotiated to an acceptable price. The Buyer then discovers numerous "conditions" that will require immediate or eventual repair or replacement. No home is quite as perfect as one would want it to be.

For the Buyer, the important issue to keep in mind is, "Do I really want this house?" By the time of the inspection, the buyer has been to the property at least two times and possible five or six times. My best advice is, "If you like the house more each time you visit it, it is probably the house for you. If it scares you more and more to own this house or you find that it has more problems than you want to deal with, then maybe this is not the house for you, and maybe, you are not even the kind of person willing to take on the responsibilities of homeownership.

Buyer does nothing on the day of closing. Buyer only needs to be available for signing during the few days prior to the closing date. The Buyer is entitled to the keys to the property at 9:00 PM on the day of closing unless other agreements have been made.

The Buyer is allowed occupancy at 9:00 PM on the "Date of Possession" stipulated in the Purchase and Sale Agreement. If the seller has moved sooner than that and gives the Buyer permission, then an earlier occupancy is possible.

Owning rental/investment property is not a bad idea. Generally, banks charge a higher rate of interest to investors when purchasing property. But you probably already have a very good rate on an established loan for your current residence. Study the current rents available for homes like yours and consider keeping your current home as a rental property.

Yes, this means that you will now have two homes to maintain. And sometimes the rental income doesn't quite cover the mortgage payment and annual upkeep. But, for your extra efforts you will be having renters pay for 80-100% of your purchase of that property. All of the appreciation gain will be yours, and you will also be able reduce your income tax burden by depreciating the property. Yes, you will someday have to pay taxes on your gain, but at capitol gain rates, this burden is a lot less than on income earned by regular means. Check with your accountant for details.