First Time Home Buyers
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 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
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Need help with your down payment and/or closing costs?
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Home buying programs in your state
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A housing counselor can help you figure out how to manage and pay off your debt, and start saving for that down payment!
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Find a housing counselor near you
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Step 2: Know your rights
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Real Estate Settlement Procedures Act (RESPA)
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Borrower's rights
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Predatory lending
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Step 3: Shop for a loan
Save money by doing your homework. Talk to several lenders, compare costs and interest rates, and 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
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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
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Step 4: Learn about home buying programs
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HUD's special home buying programs
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Good Neighbor Next Door
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Hurricane Evacuees discounted sales
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Homeownership for public housing residents
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Indian Home Loan Guarantee Program
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Step 5: Shop for a home
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Home-shopping checklist
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Homes for sale
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Fixer-uppers
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Manufactured (mobile) homes
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Build a home
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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.
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.
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For Your Protection Get a Home Inspection
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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!
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