Step 2: Know 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 lenders, compare costs and interest rates, negotiate to get a better deal. Consider getting pre-approved for a loan.

• Looking for the best mortgage: shop, compare, negotiate - brochure
• Let FHA help you

Step 4: Learn about homebuying programs

• Homebuying programs in your state

FHA loan programs offer lower downpayments and are a good option for first-time homebuyers.

• Let FHA help you
• HUD's special homebuying programs
• Good Neighbor Next Door Program - for police officers, teachers, firefighters and emergency medical technicians
• Homeownership for public housing residents
• Indian Home Loan Guarantee Program (Section 184)

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.

• Making an 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.

• For Your Protection Get a Home Inspection
• 10 Questions to ask a home inspector

Step 8: Shop for homeowners insurance

Lenders require that you have homeowners insurance. Be sure to shop around.

• Homeowners insurance
• 12 ways to lower your homeowners insurance costs

Step 9: Sign papers

You're finally ready to go to "settlement" or "closing." Be sure to read everything before you sign!

• Settlement Costs and Helpful Information

Click here to learn more about mortgage rates in your state: Mortgage Rates