Monday, December 22, 2008

Right Steps to buying a home

Moe Navidi
Real Estate Consultant
Lic# 01753283
Tel: (949) 892-7077

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

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

Let FHA help you

Why Ask for an FHA Loan?

Learn about interest only loans

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)

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

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!

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