Buying a Home

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
Figure out how much you can afford
Know your rights
Shop for a loan
Learn about homebuying 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, downpayment and the interest rate. The calculators below can help, but it is best to visit a lender to find out for sure.

How much home can you afford?
Buying vs. Renting
Home Economics
Need help with your downpayment and/or closing costs?
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!

Find a housing counselor near you

Step 2: Know your rights
Fair Housing: Equal Opportunity for All - brochure
Real Estate Settlement Procedures Act (RESPA)
Borrower's rights
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, negotiate to get a better deal. 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

Step 4: Learn about homebuying programs

Homebuying programs in your state
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 (formerly known as Teacher/Officer/Firefighter Next Door)
Hurricane Evacuees discounted sales
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.

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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.
Making an offer

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.
For Your Protection Get a Home Inspection
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.

Homeowners insurance
12 ways to lower your homeowners insurance costs

Step 9: Sign papers
You're finally ready to go to "settlement" or "closing." Be sure to read everything before you sign!

Settlement Costs and Helpful Information