The
home buying process can seem and often is complicated, but if you
take things step-by-step, you will soon be holding the keys to
your own home!
Steps to buying a home
- Figure out how much you can afford
- Know your rights
- Shop for a loan
- Learn about home
buying programs
- Shop for a home
- Make an offer
- Get a home inspection
- Shop for homeowners insurance
- Sign papers
Books
on the Home Buying Process
Step 1: Figure out how much you can afford
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What you can afford depends on your income, credit
rating, monthly expenses, down payment and interest rate. The calculators below can help, but it is best to
visit a lender to find out for sure.
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A
housing counselor can help you figure out how to manage and
pay off your debt, and start saving for that down payment! Find
a housing counselor near you
Step 2: Know your rights
Step 3: Shop for a loan
- mortgage or home equity
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. Take the time to shop.
You will save thousands up-front and over the life of your loan.
Step 4: Learn about home buying programs
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Home buying
programs in your state |
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FHA loan programs offer lower down payments and are a good
option for first-time homebuyers.
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HUD's
special home
buying programs
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Good
Neighbor Next Door Program - for police
officers, teachers, firefighters and emergency
medical technicians |
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Homeownership
for public housing residents |
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Indian
Home Loan Guarantee Program (Section 184) |
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Step 5: Shop for a home
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Choose
a real estate agent |
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Wish
list - what features do you want? |
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Home-shopping
checklist – take this list with you when comparing homes |
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Homes
for sale (including HUD homes) |
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"Fixer-uppers"
- home purchase and repair 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 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.
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Making
an offer
(new) |
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. You can save hundreds of dollars per month
when you shop. Read more in our guide below or click here for Homeowner
Insurance Quotes
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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Settlement
Costs and Helpful Information |
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