The Home Buyer's Guide

What you need to know about buying a house

The American Dream is to own your own home. However, buying a home can be a stressful time and knowing what to expect can help you make the correct decision.

The Buyers Guide

What are the benefits of buying your first home?

  • Avoid rent increases and cancelled leases.

  • Build your credit.

  • Receive tax benefits by deducting your mortgage interest and real estate property taxes on your income tax returns.

  • Build home equity.

 

What should I consider before I buy a home?

  • Financial Stability and budgeting: You will need to pay your mortgage and utilities monthly. However, you must budget enough funds to cover costs for maintenance and repairs, property taxes, homeowners insurance, and possible HOA fees.

  • Risks: Due to the ever changing market, a real estate investment does not always increase in value. Your property value may increase or decrease over time.

  • Commitment: When you own a home, it is harder to pick up and move with short notice, you’re obligated to sell the home first.

 

How do I get started?

Create a financial plan to understand your credit and how much you can borrow.

  • Check your credit history and make a plan to better your credit.

  • Contact a Homestar Loan Originator to see what type of loan you qualify for and how much you can borrow.

 

Contact a licensed real estate agent.

There are many online resources today that you can contact and research. However, you do not receive that one on one valuable feedback from a computer screen like you would from a licensed agent. A realtor can make the homebuying experience less stressful because of their wide base knowledge of the market. A realtor offers:

  • Professional assistance.

  • Market knowledge.

  • Up to date information on geographic areas, home listings, pricing, school districts, etc.

Finding the perfect agent is easy. You can search online, ask friends and family, or ask your mortgage consultant.

 

What is the process for 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.

 

For more information on the steps to buying a home, visit HUD.gov.

http://portal.hud.gov/hudportal/HUD?src=/topics/buying_a_home