The secret of success is to be ready for opportunity when it comes
The home buying process can seem complicated, but if you take things step-by-step, you will soon be holding the keys to your own home!
Nine 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
Step 1: Figure out how much you can afford
What you can afford depends on your income, credit rating, current monthly expenses, down payment and the interest rate. The calculator tab can help, but it is best to visit a lender to find out for sure. Getting pre-approved for your loan is one of the most important steps in your home buying process.
Step 2: Know your rights
Fair Housing: Equal Opportunity for All - brochure, Real Estate Settlement Procedures Act (RESPA), Borrower's rights, Predatory lending.
Step 3: Shop for a loan
Save money by doing your homework. Talk with several lenders, compare costs and interest rates, negotiate to get a better deal. Consider getting pre-approved for a loan.
Step 4: Lear about home buying programs
FHA loan programs offer lower down payments and are a good option for first-time home buyers.
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 Broker. 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!
For more information about the "Nine steps to buying a home", click on the following link: www.hud.gov/buying/index.cfm .