9 Steps To Buying A Home

Real Estate Agent with The Michael Bean Group, LLC

9 Steps To Buying

real estate 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.
Need help with your downpayment and/or closing costs?
A housing counselor can help you figure out how to manage and pay off your debt, and start saving for that downpayment!

Step 2: Know your rights

Step 3: Shop for a loan
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
FHA loan programs offer lower downpayments and are a good option for first-time homebuyers.
Let FHA help you
HUD's special homebuying programs Good Neighbor Next Door Program - for police officers, teachers, firefighters and emergency medical technicians
Homeownership for public housing residents
Indian Home Loan Guarantee Program (Section 184)

Step 5: 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.

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.

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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