Home Buying Process
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 Lst. 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 broker, too.
Find a Real Estate Broker
You'll want to start searching for a broker as soon as you decide to buy a home.
Talk to several and find someone you think you'll be comfortable working closely
with. Many of your friends and relatives have probably bought and sold their
homes through brokers. Ask them who they used and what their experiences were.
You can find out which brokers specialize in the kind of home or the area you
want by looking in the Yellow Pages or your local newspaper's classified real
estate ads. Or drive through neighborhoods and note the names of brokers on "for
sale" signs. When you talk to prospective brokers, ask questions about the areas
and types of homes in which you're interested. Do they seem knowledgeable? Most
important, is their personal style a good fit with your own?
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. HUD offers some special homebuying programs. Also, many local
governments offer special homebuying programs to help low-income homebuyers.
Shop around - you may be surprised at all your options!
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