Step 1: How much can you spend? What you can afford depends on your income, credit rating, current monthly expenses, down payment and the interest rate. Use this calculator to find out how much you can afford to spend. Step 2: Know your rights. Make sure you know your rights involved in purchasing a home. Check out the Real Estate Settlement Procedure Act, Borrowers' Rights, and Predatory Lending information. 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.
Step 4: Learn about homebuying programs. Homebuyer loan programs offer lower down payments and are a good option for first-time homebuyers. When shopping for a home, choose a real estate agent. Then decide what qualities and features you want your new home to have. Finally, weigh your options. Choose between homes you've viewed based on how well they meet your criteria, fixer-upper houses, buying land and building a house, or even a mobile home. 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. You're finally ready to go to "settlement" or "closing." Be sure to read everything before you sign! |
