Buying a Home

Don’t be overwhelmed with the homebuying process. If you just follow this step-by-step guideline provided by HUD, you will soon be holding the keys to your own home!

Nine steps to buying a 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

How much you can afford depends including sources of your income, credit rating, current monthly expenses, current debts, downpayment, and the interest rate. The calculators on the left panel can help you crunching some numbers. It is best, however, to sit down with one of our knowledgable staffs.
We can help answering any concern that you may have.

Step 2: Know your rights

Followings are some materials published by HUD. If you have time, it’s recommended that you read them to learn more about 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 mortgage brokers and/or lenders. Compare costs and interest rates, negotiate to get a better deal.

Anyway, getting pre-approval letter for a loan is a good idea. A pre-approval letter would make your case looks better when you submit offers to purchase a home.
Please talk to our staffs if you need to have a pre-approval letter now.

Step 4: Learn about homebuying programs

It’s important to learn that there are many loan programs out there in the marketplace. Please talk to your agent to learn
about all loan programs that might be applicable to you. For instance, FHA loan programs offer lower downpayments and are a good option for first-time homebuyers.
VA also makes special loans available to veterans. Many states and local goverments may also have special loan programs and assistances to home buyers.

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.
Your real estate agent should be able to recommend a good home inspector.

Step 8: Shop for homeowners insurance

Lenders require that you have homeowners insurance. Be sure to shop around for a good policy since the house may be your biggest asset.

Step 9: Sign papers

You’re finally ready to go to “settlement” or “closing.” Be sure to read everything before you sign!