Knowing your mortgage qualification is the first step.
pre-qualified for a mortgage, and get a pretty
good idea of what you can borrow. However, i f you get
pre-approved for a mortgage, you will remove any
uncertainty. A pre-approval is also important
as you negotiate the purchase of your property.
Buying a Home
Know Your Rights as a Homebuyer
Before you start, there are many laws that protect you
from scams, unnecessary expenses, and discrimination
in the process of homebuying. Know your rights!
Find out How Much Mortgage Can You Afford
You can save yourself a lot of wheel-spinning if you take
a minute to figure out how much mortgage you can
afford. Generally, a lender will want your monthly
mortgage payment to total no more than 29% of your
monthly gross income (that's your monthly income
before taxes and other paycheck deductions are taken
out.) You also need to consider current loan interest
rates. The lower the interest rate, the more expensive
the home you'll be able to afford. Follow our tips and use
these simple calculators to see how much you can
afford in a mortgage payment.
Create Your "Wishlist"
Make your wish list. Focus on the features you want in
a home: 2 bedrooms or 3? 1 bath or 2? Garage or no
garage? Knowing what you're looking for will help you
focus your search. And it will help your real estate
Now, it's time to:
Find a Real Estate Broker
Mortgages and Homebuying Programs
Many different kinds of mortgages are available to you. Read about them, and make sure you
understand the pros and cons of each. Your real estate broker can help you. A loan officer
can answer your questions and help you get started.
Shopping for a Home
Now you really begin house-hunting. Your real estate broker will be able to find listings for you,
based on your wishlist. But don't stop there! You can do your own looking, and then ask your
broker to show you the house. Start with the Internet. Pick up real estate flyers at local grocery
stores and convenience stores. Read the real estate sections of your local newspaper. Drive
around neighborhoods that interest you and write down addresses where there are "for sale"
signs. Go to open houses. Try everything!
Building a Home
If you want to build a new home, there are other things you need to know before you begin. Learn
about construction standards and about buying land, so you know your rights.
When you make an offer on a home, it's a good idea to make your offer contingent on a home
inspection, conducted by an independent authorized inspector. You will have to pay for this
inspection yourself, but it could keep you from buying a house that will cost you far more in
repairs, down the road. If you are satisified with the results of the inspection, then your offer can
proceed. If you aren't,you may want to negotiate, asking the seller to pay for certain repairs or
asking for a lower price.
Your lender will require you to get an appraisal of the house you want to buy, to make sure it's
worth the money that you're borrowing. You may select your own appraiser, or you may ask your
real estate broker to help you take care of that.
Lenders require that you have homeowners insurance, to protect both your interests and theirs.
Like everything else, be sure to shop around for insurance that fits your needs.
Settlement or Closing
Finally, you've gone through the whole process, and you're ready to go to "settlement" or
"closing." We know you'll be excited, but be sure to read everything you sign! And before you go,
read this important information about your rights.
Looks like you're ready to move. There's a lot to consider as you plan your move. The good news
is that there's lots of help.