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!
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.
# Buying vs. Renting
Step 2: Know your rights
# Fair Housing: Equal Opportunity for All - brochure
# 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, compare, negotiate - brochure
Step 4: Learn about homebuying programs
# Good Neighbor Next Door (formerly known as Teacher/Officer/Firefighter Next Door)
# Homeownership for public housing residents
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
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!
