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

Step 2: Know your rights

	Fair Housing: Equal Opportunity for All - brochure
	Real Estate Settlement Procedures Act (RESPA)
	Borrower's rights
	Predatory lending

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

Step 4: Learn about homebuying programs

Homebuying programs in your state

FHA loan programs offer lower down payments 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.

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