The homebuying process can seem complicated, but if you take things step-by-step,
you will soon be holding the keys to your own home!
Nine steps to buying a home
Figure out how much you can afford
Know your rights
Shop for a loan
about homebuying programs
Shop for a home
Get a home inspection
Shop for homeowners insurance
Step 1: Figure out how much you can afford
What you can afford depends on your income, credit rating,
current monthly expenses, downpayment and the interest rate. By calculating the things below can help, but it is
best to visit a lender to find out for sure.
| ||How much home can you afford?|
| ||Buying vs. Renting|
| ||Home Economics|
Need help with your downpayment and/or closing costs?
| ||Check out homebuying programs in your state|
A housing counselor can help you figure out how to manage
and pay off your debt, and start saving for that downpayment!
| ||Find a housing counselor near you|
Step 2: Know your rights about the following
acts by visiting the U.S. Department of Housing and Urban Development at www.HUD.
| ||Fair Housing: Equal Opportunity for All|
| ||Real Estate Settlement Procedures Act (RESPA)|
| ||Borrower's rights|
| ||Predatory lending|
Step 3: Shop for a loan
Save money by doing your homework. Talk to several lenders, compare costs and
interest rates, negotiate to get a better deal. Consider getting pre-approved for a loan.
| ||Looking for the best mortgage: shop,
| ||Let FHA help you|
| ||Learn about interest
| ||Avoid predatory
Step 4: Learn about homebuying programs
FHA loan programs offer lower downpayments and are a good option for first-time homebuyers.
| ||Let FHA help you|
special homebuying programs |
Neighbor Next Door (formerly known as Teacher/Officer/Firefighter Next
| ||Hurricane Evacuees discounted sales|
| ||Homeownership for
public housing residents|
Home Loan Guarantee Program (Section 184)|
Step 5: Shop for a home
| ||Choose a real estate agent|
list - what features do you want?|
| ||Home-shopping checklist – take this list with you when comparing homes|
| ||Homes for sale (including HUD homes)|
| ||"Fixer-uppers" - home purchase and repair programs|
| ||Manufactured (mobile) homes|
| ||Build a home|
If you choose a home in a neighborhood with a Home Owners
Association (HOA), be sure to request a copy of the HOA packet, so you can review before closing.
Step 6: Make an offer
Discuss the process with your real estate agent. If the seller counters your
offer, you may need to negotiate until you both agree to the terms of the sale.
Step 7: Get a home inspection
Make your offer contingent on a home inspection. An inspection will tell
you about the condition of the home, and can help you avoid buying a home that needs major repairs. Find out what questions
you should ask an inspector and what to look for by visiting the U.S. Department of Housing and Urban Development at http://www.hud/.
| ||For Your Protection Get a Home Inspection!|
| ||Question your
home inspector |
Step 8: Shop for homeowners insurance
Lenders require that you have homeowners insurance. Be sure to shop around.
| ||Shop around for homeowners insurance|
ways to lower your homeowners insurance costs|
Step 9: Sign papers
You're finally ready to go to "settlement" or "closing."
Be sure to read everything before you sign!