Nine steps to buying a home
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. The calculators below can
help, but it is best to visit a lender to find out
for sure.
Need help with your downpayment and/or closing
costs?
A housing counselor can help you figure out how
to manage and pay off your debt, and start saving
for that downpayment!
Step 2: Know your rights
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.
Step 4: Learn about homebuying programs
FHA loan programs offer lower downpayments and
are a good option for first-time homebuyers.
Step 5: Shop for 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.
Step 8: Shop for homeowners insurance
Lenders require that you have homeowners
insurance. Be sure to shop around.
Step 9: Sign papers
You're finally ready to go to "settlement" or
"closing." Be sure to read everything before you
sign!
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