| For Louisville Kentucky first-time home buyers, there is a huge amount of information and guidance available. Sorting it out, and making sure that it is objective can be challenging. FHA provides the best guidance in this area centered around 9 steps any soon-to-be homeowner should take. |
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Step 1. Figure out how much you can afford.
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Step 2. Should you rent or buy?
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Step 3. Know your rights.
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You need to make sure you receive the information you are entitled to along your road to homeownership.
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You have the Right to..
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Shop for the best loan for you and compare the charges of different mortgage brokers and lenders.
Ask for a Good Faith Estimate of all loan and settlement charges from your lender before you agree to the loan and pay any fees.
Know what fees are not refundable if you decide to cancel the loan agreement.
Ask your mortgage broker to explain exactly what the mortgage broker will do for you.
Know how much the mortgage broker is getting paid by you and the lender for your loan.
Ask questions about charges and loan terms that you do not understand.
Receive a credit decision that is not based on your race, color, religion, national origin, sex, marital status, age, or whether any income is from public assistance.
Know the reason if your loan was turned down.
Ask for the HUD settlement cost booklet "Shopping for Your Home Loan" from your lender.
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Step 4. Shop for a loan.
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To find a lender and loan terms that best meet your needs, you should learn some of the terminology used, what can help you, and what can cost you. To help guide you in shopping for the right loan, check out this HUD booklet by clicking http://www.hud.gov/buying/booklet.pdf |
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Step 5. Check out Home-buying Programs
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Your lender usually knows about any local programs offered to first time homebuyers, but it is always good to check for yourself. One avenue to do so is to see what programs have been identified by local HUD offices. Click here to see what might be available in your state: http://www.hud.gov/buying/localbuying.cfm |
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Step 6. Finding a qualified real estate agent to help you buy your home
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Nearly 75% of today's home are found and purchased through the Internet. This does not eliminate the need for you to select a qualified real estate agent to represent you. A qualified real estate agent provides the best security for any buyer in ensuring a great home purchase. You should expect your agent to:
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Develop a preliminary evaluation of a property (including both pros and cons) and provide an explanation of comparative property values in the area.
Properly advise you on price and other advantageous negotiating options and prepare a purchase offer.
Make a timely and complete offer on the home you are interested in buying.
Notify you immediately regarding offer acceptance, offer rejection, or counter offers.
Arrange inspections, warranties, and any certifications that might affect the value of the property.
Accompany you on a final walk-through of the property before closing.
Attend the closing and provide assistance to you and your attorney at the closing.
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Remember, your real estate agent can guide you, but only you know the home that is right for you.
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To locate a real estate agent in your area, click here to find agents you may wish to represent you: Find An Agent |
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Step 7. Get a Home Inspection
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What you see may be what you get, but what about what you don't see? It pays to engage the trained eyes of a home inspector to make sure you fully understand the condition of the property you are buying. To learn more about home inspections, check out the information at this site: http://www.pueblo.gsa.gov/cic_text/housing/inspection/home.htm |
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Step 8: Obtaining homeowners insurance
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Homeowners insurance is more than just a good idea. Your lender will require that you carry sufficient coverage to at least pay off your mortgage amount if your home were severely damaged. To get some background on what to look for in a homeowners insurance policy, click http://consumeraction.gov/caw_insurance_homeowner_renter.shtml |
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Step 9. Closing
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One of the most exciting moments of your life is actually closing on the purchase of your new home. To understand the process and remove stress from the event, try reading some background information provided at this website: http://www.hud.gov/offices/hsg/ramh/res/sfhrestc.cfm |
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Congratulations, you made it through the 9 steps! The materials referenced along the way are not the only sources of information for you. Check out other "Tools" available to you on the HomeTelosFIRST Homepage.
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