How to buy a home
The first step in buying a home is to determine what you can afford according to the U.S. Department of Housing and Urban Development (HUD). Lenders look at your income, credit rating, monthly expenses, down payment and interest rates to figure out how much you can afford. Calculators on the GinnieMae Web site, www.giniemae.gov/ can give you an idea of what you can spend.
Buyers need to know their rights about fair housing, borrowing and predatory lending. You can save money by shopping for a loan. Talk to several lenders, compare costs and interest rates, and negotiate to get a better deal. You might want to get pre-approved for a loan.Buyers should learn about homebuying programs like FHA loan programs that allows for a purchase or refinance with a low down payment or Nebraska Investment Finance Authority (NIFA) programs for first-time buyers.
The next step is to actually shop for a home. Make a wish list of features so you can compare homes you visit. Making an offer is the next step. Discuss the process with your real estate agent. If the seller counters your offer, you may need to negotiate until you and the seller agree to the terms. Get a home inspection and make your offer contingent on it. An inspection will tell you about the condition of the home, and can help you avoid buying a home in need of major repairs.
Next shop for homeowners insurance. Lenders require that you have homeowners insurance. Be sure to shop around. The National Association of Insurance Commissioners has information to help you choose an insurer in your state, including complaints. According to Federal Citizen Information Center information, don't consider price alone. The insurer you select should offer a fair price and deliver the quality service you would expect if you needed assistance in filing a claim.
And finally, sign the papers. It's time to go to "settlement" or "closing." Make sure you read everything before you sign.
Sources:http://www.hud.gov/
http://www.nifa.org
www.giniemae.gov/
www.naic.org)
www.pueblo.gsa.gov/