If you and the seller are having trouble agreeing on terms, try these negotiating tips. When both sides are happy and have signed the agreement, get ready for closing. If you really want the house, be flexible, persistent and creative to get the deal done.

• Avoid closing at the end of the month or the end of the year. You're likely to get better attention if you stay away from these busy times.
• Set a move-in date. You and seller should agree on a date when you'll take possession of the home and move in. Put the agreement in writing.
• Reserve funds for closing. You will need cash or a cashier's check for settlement costs (which can range from 2 percent to 6 percent of the loan) and your down payment, minus any earnest money you submitted with your offer.
• If you're keeping your down payment in an account that isn't immediately liquid (like a high-interest online savings account), move the funds to your checking account several days ahead of closing.
• Consider locking in your interest rate to protect yourself against market fluctuations. Give your lender a copy of the purchase contract. Ask if there are any fees to lock in your rate.

A title company checks the property's title records and looks for liens (claims on the property as security for money owed), overdue special assessments or other claims or outstanding restrictive covenants filed on record, which would be obstacles to the sale. Once the title is deemed legally "free and clear," the company will offer title insurance (see Step 8) as reassurance of a clear transfer of the home.

• Your mortgage broker or lender will suggest a title company or you can ask your real estate agent or attorney for referrals.
• A closing agent with the title company coordinates the formal closing, or the meeting where the final papers are signed and the house officially becomes yours. The agent works closely with your lender to set up the escrow account and compile all the necessary loan and real estate documents.

The lender wants to make sure you're borrowing an amount equal to or less than the home's market value. That's why real estate experts recommend an appraisal contingency in your purchase agreement, stipulating that if the home doesn't appraise for the purchase price, you can back out of the transaction with no penalty, other than the money you've already spent.

• An appraiser is licensed by the state and calculates a home's fair market value, using any of three basic methods.
  • Direct Sales Comparison Approach: Appraiser compares the house to similar properties that have sold in the area or comps.
  • Cost Approach: Appraiser estimates the land value and how much it would cost to replace the house if it were destroyed.
  • Income Approach: This is mainly used with commercial properties or apartment buildings; appraiser divides the annual net operating income (NOI) of the property by the appropriate capitalization rate, derived from similar properties.
• The appraiser should be an objective third party who has no financial interest in or connection to the transaction.
• Ask your mortgage broker or lender for a list of recommended local appraisers. You can also find one through the Appraisal Institute or American Society of Appraisers.
• Appraisals are detailed reports that include information about the property and its location, comparisons with three similar properties, an evaluation of the local market and notes on issues that may negatively affect the property's value. The cost of an appraisal depends on the size of the home. It can range from $300 to $600.

Like the appraisal contingency, an inspection contingency in your purchase agreement lets you bail out of the deal if the home has major problems or damage that affect its value.

A professional home inspector checks the condition of the home to make sure it is structurally sound and looks for issues that could potentially become costly disasters. A typical inspection covers all major mechanical systems, structural integrity, cosmetic features and other aspects of the house.

• The task should take two to four hours or more, depending on the complexity of the job. Costs range from $300 to $800 for typical homes, but they can go higher depending on the age and type of structure.
• Be present during the inspection so you can ask questions.
• Read Home Inspection 101 and How to Find the Right Home Inspector for more tips.
• If you have allergies or live in an area that is prone to elevated mold or radon levels, consider having a separate inspection done by an environmental consultant. General home inspections will not test for mold or radon.
• If you are concerned about termites or other pests, consider getting a separate inspection for that. Learn more about pest inspections.
• After reviewing the inspection report, ask the seller to fix any issues raised by the inspector or ask for money so you can get them fixed.
• If you are buying the home "as is", you can still get an inspection to find out about potential problems. But if you find something wrong, you are still contractually obligated to buy the property.

Your lender requires proof of a valid homeowner's insurance policy for the home, which you must secure before closing. This policy will protect your investment (and the lender's) in the event of property damage, theft and even liability.

• You generally need enough insurance to cover the cost of rebuilding your home at today's prices. Multiply the square footage of your home by the local building costs of your type of house. Insurance agents can calculate this and provide free quotes.
• Decide if you need more comprehensive insurance. Do you want to cover your personal property? Do you need liability coverage?
• Shop for affordable premiums and look into insurance companies rated highly by a third-party rating organization like A.M. Best.
• Once you choose an insurance provider, give the insurance agent's contact information to your closing agent so they can coordinate getting the premium in escrow.
• Insurance can cover:
  • Casualty or hazard and helps rebuild or repair your home should it be destroyed or damaged by specific hazards such as:
    • Fire or smoke damage;
    • Lightning;
    • Windstorms, hail and explosions;
    • Vandalism or malicious mischief;
    • Breakage due to theft or accident;
    • If your home is in a flood-prone area, consider getting a separate policy for flood damage.
  • Liability or lawsuits resulting from injuries to any visitors on your property;
  • Personal property such as antiques, computer equipment, electronics, artwork, jewelry and other valuables, so you can:
    • Decide if you want "actual cash value" or "replacement cost" coverage. Oftentimes the actual value of an item is less than the cost of replacing it. Replacement-cost coverage replaces your valuables at today's prices. The policy costs more, but provides better protection.
  • Your auto or life insurance provider may give you a deal if you bundle all your insurance plans.

In addition to protecting your home against hazard damage or theft, consider getting a home warranty policy to cover the cost of unexpected repairs or replacement of major systems and appliances. You pay for a yearlong service contract which ranges from $250 to $400, depending on coverage.

Here's how it works. When a system or appliance breaks down from normal wear and tear, you contact the home warranty company which sends a technician to fix the problem. Items covered include plumbing, electrical systems, air conditioning, furnace, stove/oven, refrigerator, washer/dryer, etc.

Read about how to make the most of this coverage.

Two days before closing, take a tour of the house to verify it's in the condition you expect it to be in. If you asked the seller to make any fixes or leave any appliances or furnishings as part of the purchase contract, check to make sure these were done.

Request copies of your closing documents at least two days in advance so you can read them before closing. Pay special attention to the HUD-1 Settlement Statement, which outlines the loan terms, exact amounts of money that will be exchanged at closing and how they will be disbursed, and total amount of funds you will need to bring to closing in the form of cash or a cashier's check. Review it carefully and look for any discrepancies with the Good Faith Estimate (GFE) you received earlier. If there are any errors, contact your lender.

At closing, the closing agent will have a stack of documents he or she will review with you and the seller. Read each one carefully before signing and ask questions about items you don't understand. The documents include the:

• Mortgage note which outlines the buyer's promise to pay back funds borrowed from the lender with the house as security;
• Mortgage or Deed of Trust which shows that a lien is being placed on a property and allows the lender to foreclose on the property if the borrower defaults;
• HUD-1 Settlement Statement;
• Warranty Deed which transfers the title from the seller to the buyer;
• Commitment for Title Insurance which indicates that the title company will issue title insurance to the buyer if certain requirements are met, such as payoff of the seller's current mortgage and evidence of the buyer's new mortgage.

Show a receipt as proof that you purchased homeowners insurance for the home and hand over the cashier's check for the down payment and closing costs. After all legal documents are signed, the title company will officially record the deed and other legal documents with the appropriate government agencies.

Now you can celebrate. The home is yours!

If you're buying a condo or property governed by a homeowners association (HOA):

• Get a current copy of the HOA's covenants, conditions and restrictions (CC&Rs);
• Introduce yourself to the association president and ask to be informed of meetings so you're aware of what's going on in your community;
• Review the HOA's budget to see how your fees are spent;
• Consider setting up automatic debit payments for your monthly fees;
• Look out for special assessments by the HOA.

Now that you have a new home, start planning your move. Read FrontDoor's Moving Guide for tips on how to make your move go smoothly.

If you're moving for a job that's at least 50 miles away from your current home, see if you can deduct moving expenses.