Buying a Home
- 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!
- Figure out how much you can afford
- Know your rights
- Shop your loan
- Learn about homebuying programs
- Shop for a home
- Make an offer
- Get a home inspection
- Shop for homeowners insurance
- Sign papers
Nine Steps to buying a home
- What you can afford depends on your income, credit rating, current monthly expenses, downpayment, and the interest rate. The calculator to the left can help, but it is best to visit a lender to find out for sure.
Step 1: Figure out how much you can afford
- Fair Housing: Equl Opportunity for All
- Real Estate Settlement Procedures Act (RESPA)
- Borrower’s rights
- Predatory lending
Step 2: Know your rights
- 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.
Step 3: Shop for a loan
- FHA loan programs offer lower downpayments and are a good option for first-time homebuyers.
Step 4: Learn about homebuying programs
- 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 5: Shop for a Home
- Discuss the process with your realtor. If the seller counters your offer, you may need to negotiate until you both agree to the terms of the sale.
Step 6: Make an offer
- 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.
Step 7: Get a home inspection
- Lenders require that you have homeowners insurance. Be sure to shop around.
Step 8: Shop for homeowners insurance
- You’re finally ready to go to “settlement” or “closing.” Be sure to read everything before you sign!
Step 9: Sign papers