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!

1. Figure out how much you can afford
2. Know your rights
3. Shop for a loan
4. Learn about homebuying programs
5. Shop for a home
6. Make an offer
7. Get a home inspection
8. Shop for homeowners insurance
9. 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.

Need help with your downpayment and/or closing costs?

A housing counselor can help you figure out how to manage and pay off your debt, and start saving for that downpayment!

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.

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 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.

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.

Step 8: Shop for homeowners insurance

Lenders require that you have homeowners insurance. Be sure to shop around.

Step 9: Sign papers

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