1.  Never shop for a home without being pre-approved for your loan.

There are two basic reasons for this. First, by getting pre-approved, you know exactly how much you can spend on your house, which prevents you from wasting time on homes you can't afford and gives you some leverage when trying to bargain a seller down. Secondly, by being pre-approved, you're going to have an edge on a home versus other buyers who are only pre-qualified, or nothing.  Picture it from the seller's perspective. When you're selling a house, you want to get it over with as quickly as you can. Now imagine you're in possession of several offers for your house. One is from a pre-approved couple; in other words, the bank has looked at their finances and approved a loan up to a certain amount. A second is from a pre-qualified couple, which means they've spoken to a broker who has written a letter stating that in his opinion, they are able to afford a home up to a certain amoung. The third is neither pre-qualified nor pre-approved.

The first couple, the pre-approved one, is going to be able to close a sale right away. The second couple, after a trip to the bank and the completion of that mountain of paperwork, will be ready to close in a week or three. The last couple – well, they may or may not be able to close ever, and  aren't even certain they'll be able to afford the home, unless by some miracle they have cash in hand.

Who would you take? That will be the seller's decision too.

A verbal agreement really is worth the paper it's printed on. Never, never, never sign something that is not what you agreed to verbally, no matter what the realtor or homeowner is telling you. For instance, the homeowner offers to throw in the above-ground pool while you're talking about the home. But when it comes to contract time, the pool is nowhere in the document; the homeowner tells you that he didn't include it for some reason (taxes, ex-wife, whatever), but that he is going to leave it. Don't believe it! If the deal is important to you, get it on paper. Verbal agreements are never legally binding, even if six police officers, a judge, the President of the United States, and the Pope witness it.

3. Never choose a lender on the grounds of one low fee or interest rate.

Many lenders offer a remarkably low interest rate, but make up for it in higher APR, loan fees, discount points, and origination points. Make certain that your lender lists discount points (which are charged by your lender to reduce interest rates) separately from origination points (which are charged for services rendered when the loan is originated). If this is Greek to you, just remember to find out what the total cost of the loan is going to be: up-front costs, cost per month, and final total cost. You may be surprised.

In addition to the mortgage cost, look at the reputation of the lending firm. Are they honest? Will they deliver the loan at the promised terms and costs? Are they willing to make their loan offer to you in writing? A lender that changes its terms at the last minute can cost you either your dream home or a lot of money; you'll have the choice of starting over with another lender or paying the unfair extra charge. Try to get referrals from people you trust, and interview mortgage companies, asking them hard questions, before agreeing to anything.

4.  Your broker or lender is required by law to give you a Good Faith Estimate (often abbreviated GFE) within three days of receiving your loan application.

This is a written statement of fees associated with your transaction. If they don't give you your GFE in a timely manner, you should reconsider using them! Whenever you sign loan documents, bring your GFE with you. You should never pay fees substantially different from the ones listed on the GFE, though they can fluctuate slightly.

5.  Always lock in your rate in writing.

As soon as the mortgage originator tells you your rate is locked, get a written statement with the interest rate, length of rate lock, and all program details.

6.  Using an agent who represents both the buyer and seller is a conflict of interests.

Think about it: the buyer wants to get the lowest price, and the seller wants to get the highest price; the seller generally pays the commission based on what the agent sells the house at. Who do you think is going to get burned if you use the same agent? Always have an agent who is completely uninvolved with the seller, and who is also uninvolved with the seller's agent. If the seller's agent offers you a discount if you use him or her, question why. This can sometimes save you money, but procede with caution and make sure you do your homework.

7.  Never, never, never buy a home that has not been professionally and objectively inspected.

Most home buyers are not qualified to look for roof problems, foundation issues, or termite damage. Only a professional will find most of these things. In addition, you should be absolutely certain the inspector is unbiased. If the homeowner has had an inspection done, you can use it if you trust that the inspector had nothing to gain from lying on that inspection. And if the seller agrees to make specified repairs, have the inspector verify that these repairs have been done before you close escrow. Talk to him before hiring him to see if this repeat inspection is included in his price, or if he'll give you a discount on it.

8.  Home insurance can add significantly to your home's costs.

Always shop for insurance well before closing, preferably as soon as you have an offer accepted. This gives you the opportunity to shop around, and will keep you from committing to a home with crippling insurance costs.

9. Always read documents before you sign them.

Everyone says they do this, and hardly anyone ever does. Review everything in advance, and if the contract goes back for changes, re-check everything again before you sign it. Don't expect to stop and read everything during the closing appointment; instead, ask your realtor, banker, or broker to give you advance copies of the documents to check carefully before you go into the closing meeting.

10.  Don't have your moving van in your new home's driveway on closing day.

In a perfect world, you'd be able to move right in; in the real world, however, you could have a delay of a week or more. Plan to move about a week or so after the closing date. This gives you a cushion, and if the delay is more than a week, you can work with your moving company and your outgoing landlord to ensure you have a little more time. And all it's going to cost you is a week's rent.