A man’s home may seem to be his castle on the outside; inside, it is more often his nursery. But the homebuying process can seem complicated. Take things step-by-step, you will soon be holding the keys to your own home!
First of all you have to
1.Figure out how much you can afford
2.Know your rights
3.Shop for a loan
4.Learn about homebuying programs
5.Shop for a home
6.Make an offer
7.Get a home inspection
8.Shop for homeowners insurance
9.Sign papers
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.
Know your rights
Fair Housing: Equal Opportunity for All – brochure
Real Estate Settlement Procedures Act (RESPA)
Borrower’s rights
Predatory lending
Then you have to shop for a loan
You can save your money by doing your homework. It’s better to talk to several lenders, compare costs and interest rates, negotiate to get a better deal then consider getting pre-approved for a loan.
Looking for the best mortgage: shop, compare, negotiate – brochure
Let FHA help you
Why Ask for an FHA Loan?
Learn about interest only loans
Avoid Predatory Lenders
Learn about homebuying programs
FHA loan programs offer lower downpayments and are a good option for first-time homebuyers.
HUD’s special homebuying programs Good Neighbor Next Door (formerly known as Teacher/Officer/Firefighter Next Door)
Hurricane Evacuees discounted sales
Homeownership for public housing residents
Indian Home Loan Guarantee Program (Section 184)
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
Manufactured (mobile) homes
Build 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.
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. You have to get a home inspection and 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.
Dont forget to shop for homeowners insurance
Lenders require that you have homeowners insurance. Be sure to shop around.
Finally – Sign papers
You’re ready to go to “settlement” or “closing.” Be sure to read everything before you sign!
