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!
Nine steps to buying a 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. The calculators below can help, but it is best to visit a lender to find out for sure.
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How much home can you afford? |
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Buying vs. Renting |
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Home Economics |
Need help with your downpayment and/or closing costs?
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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 downpayment!
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Find a housing counselor near you |
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Fair Housing: Equal Opportunity for All - brochure |
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Real Estate Settlement Procedures Act (RESPA) |
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Borrower's rights |
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Predatory lending |
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.
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Looking for the best mortgage: shop, compare, negotiate - brochure |
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Let FHA help you |
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Why Ask for an FHA Loan? |
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Learn about interest only loans |
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Avoid Predatory Lenders |
Step 4: Learn about homebuying programs
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Homebuying programs in your state |
FHA loan programs offer lower downpayments and are a good option for first-time homebuyers.
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Let FHA help you | ||||||||
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HUD's special homebuying programs
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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 |
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Manufactured (mobile) homes |
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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.
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 |
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.
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For Your Protection Get a Home Inspection |
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10 Questions to ask a home inspector |
Step 8: Shop for homeowners insurance
Lenders require that you have homeowners insurance. Be sure to shop around.
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Homeowners insurance |
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12 ways to lower your homeowners insurance costs |
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 |
Source: U.S. Department of Housing and Urban Development (HUD)
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Allegiance Home Inspections, Inc. • P.O. Box 332 • East Setauket, NY 11733 Tel: (631) 525-2696 • Fax: (631) 473-4030 • al@homeinspectli.com |
