Home Buying Guide
How to buy a house

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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

  1. Figure out how much you can afford
  2. Know your rights
  3. Shop for a loan
  4. Learn about home buying programs
  5. Shop for a home
  6. Make an offer
  7. Get a home inspection
  8. Shop for homeowners insurance
  9. Sign papers
  10. Books on the Home Buying Process

Step 1: Figure out how much you can afford

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.

 - How much home can you afford?
 - Buying vs. Renting
 - 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 down payment!  
Find a housing counselor near you


Step 2: Know your rights

 -   Fair Housing: Equal Opportunity for All
 -   Real Estate Settlement Procedures Act (RESPA) See our Guide
 -   Borrower's rights
 -   Predatory lending
 

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.

 -   Looking for the best mortgage: shop, compare, negotiate - brochure
 -   Let FHA help you
 -   Why Ask for an FHA Loan?


Step 4: Learn about home buying programs

 -   Homebuying programs in your state
FHA loan programs offer lower down payments and are a good option for first-time homebuyers.
 -   HUD's special homebuying programs
 -   Good Neighbor Next Door Program - for police officers, teachers, firefighters and emergency medical technicians
 -   Homeownership for public housing residents
 -   Indian Home Loan Guarantee Program (Section 184)


Step 5: Shop for a home

 -   Choose a real estate agent
 -   Wish 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

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.

 -   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.

 -   For Your Protection Get a Home Inspection - Review our guide to Home Inspection

 -   10 Questions to ask a home inspector
- What can does a Home Inspector do?


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

 -   Homeowner Insurance Guide and Ways to Save on the cost


Step 9: Sign papers

You're finally ready to go to "settlement" or "closing." Be sure to read everything before you sign!

 -   Settlement Costs and Helpful Information
Home Buy Guides