Buying a home can be complicated, but if you take things step-by-step, you will soon be holding the keys to your own home!

Step 1: Figure out how much you can afford
What you can afford will depend on your income, credit rating, current expenses and debt, the down payment you can afford to make and the interest rate.  Your interest rate may be set for the life of the loan or may fluctuate with changing interest rates.  Because of the current credit market you should spend some time to ensure you can afford to buy the house that you want.

Step 2: Know your rights
The federal government and your state have laws on housing discrimination, lending practices and other areas related to buying a home.

Step 3: Shop for a loan – do you qualify for a special loan?
Save money by doing your homework.  Because of the current housing climate you may be able to get a very good deal, or if you have bad credit you may not be able to get any loan at all.  Talk to several lenders, compare costs and interest rates.  Special loans are also available if you qualify, such as for veterans, first time home buyers and certain occupations such as teachers.

Step 4: Learn about home buying programs
The federal government and some state and local governments have incentive programs for buying homes in certain areas.  This may include qualifying for government backed loans, tax credits and lower down payment requirements.

Step 5: Get a real estate agent and shop for a home
Do you want a brand new home, an older home or a fixer upper?  Choose a real estate agent who specializes in the type that you want.  Create a checklist before seeing any homes and bring the checklist with you.  If you are thinking about a home in a neighborhood with a Home Owners Association (HOA), be sure to request a copy of the HOA’s bylaws.  Use the internet to save time.  Most home listings are posted on the internet and many of them have pictures.

Step 6: Make an offer
Discuss the process with your real estate agent. Be prepared to negotiate if the seller counters your offer.

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, or may help in negotiating for a lower price.  Some states may require an inspection before a home may be sold.  Ask your real estate agent what is required in your area.

Step 8: Shop for homeowner's insurance
Lenders require that you have homeowner's insurance. Be sure to shop around.

Step 9: Close and sign the papers
You're finally ready to go to "settlement" or "closing." Be sure to read all of the documents before you sign them.  In addition to a real estate agent you may want to have an attorney with you at closing as well.

Step 10:  Hire a mover!

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