How to Buy a House Tips and steps about How To Buy a House for First-Time Home Buyers.

How to Buy a House
So you want to buy a home of your own, but first you want to get a better understanding of what you will need to do and when you need to do it. Smart move! You really do need to understand what you are getting into to ensure you have a good homebuying experience.

Here is a quick overview of a typical homebuying process. The steps include:

  1. You decide it is time to buy a home of your own.
  2. Take a first-time homebuyer education class offered by your local HUD- Approved housing counseling agency and/or you can take the class online at e-home America.org.
  3. After completing the class, you decide that buying a home is still right for you.
  4. Meet with a homebuyer counselor to analyze your financial situation. You'll review your budget, examine your credit standing, and decide what you can afford to spend for a monthly house payment.
  5. Research and shop for a loan officer who specializes in offering first-time homebuyer programs in your state.
  6. Compare loan officers to see which one can offer you the best programs and terms to meet your specific needs.
  7.  Select your lender, gather your documentation and submit a home loan application.
  8. Once your loan is approved by an underwriter, obtain a pre-approval letter from you lender.
  9. Research,interview and select a real estate agent to be your buyer's agent.
  10. With the help of your buyer's agent, research and refine the type of home you want to buy, the size, the number of bedrooms, the key characteristics you are looking for, where you want to buy and how much you are willing to spend.
  11. Begin shopping for a home within your affordable price range as determined by your lender.
  12. Once you find the right house, your buyer's agent will help you make an offer,  negotiate a sales price, request any seller concessions and identify the contingencies of the sale.
  13. The seller then accepts your offer by signing the Real Estate Sales Agreement or the equivalent of what your real estate agent uses in your state.
  14. With your accepted offer you will need to obtain a check for an earnest money deposit or the equivalent in your state. You may now be only 30 or 45 days away from owning a home of your own.
  15. Get the home inspected by a professional home inspector to verify the home's condition and to determine if any repairs are needed prior to purchasing the home. If there are repairs, your real estate agent will need to negotiate repairs with the seller.
  16. Once you are satisfied with the home's condition, the lender orders an appraisal to determine the property's fair market value in order to support the loan amount you have requested.
  17. Shop for and obtain homeowner's insurance and provide the home insurance agent's contact information to your lender.
  18. The lender notifies the escrow company or closing agent (in some states this may be an attorney) that you are ready to purchase the home and close the loan. You go to the escrow company or closing agent and bring the required funds to close the loan. These funds are typically provided in the form of a Cashier's Check that you obtain from a bank.
  19. You sign all the documents and then the real estate transaction is processed, funded and closed. After your lender authorizes funding of your loan, ownership in the home is leaglly transferred to you and then you get the keys and move into your first home!
  20. Congratualations! You are now a homeowner and can begin moving!