by Effie Moore Salem

Created on: August 20, 2008   Last Updated: July 06, 2010

Buying a home begins with a need, a desire to own as opposed to renting, and it begins with a plan on how to pay for it. If you have the need and the desire and no down payment and no plan on how to save for one, you are just dreaming. You need to start saving for a down payment and this includes a strict budget. Set aside every available penny into a savings account as a start.

Together you and your family must decide to make some lifestyle changes and this may mean no vacations, no eating out and a drastic overhaul of your spending. Once you have saved enough for a down payment and you are sure you can meet the monthly payments by your frugal lifestyles, you start looking and learning about the real estate market.

Decide what options are open to you and compare them to what your requirements are. If you have small children or are planning your family, you want to get into an area with a good school system; if wide open spaces are important you will want to consider the pros and cons of being outside of the business district and the problems of commuting to work.

Once you know what you want you begin to talk with real estate professionals and let it be known you are in the market for a new home. However, you do not leave the situation up to them; you get busy checking out everything available about home buying and learn to speak their language. You will of course check out the credentials of those you deal with.

If you know little about the process of buying a home check out hud.gov for their tips on home buying. They have a list of nine steps beginning with deciding what you can afford according to your income, your credit rating, your monthly expenses, down payment and interest rate on your new house. They advise you to check out your state for helps on "knowing our rights" and understand the fair housing laws and become acquainted with RESPA (Real Estate Settlement Procedures Act).

By the time you are ready to "shop for a loan" you will know to shy away from predatory lenders, will be able to spot them and will understand your rights. You will shop around for lenders and will not settle on one until you have talked to several and will compare what they offer. When you are well informed you shop for a home, armed with a list of agents, a list of wants, your check list and a list of homes for sale.

You then make an offer, get the home inspected, shop for Home Owner's Insurance and then you sign the papers that make you the new owner. On this particular web site, it took me only five minutes or less to go from step one to step nine but it will take you months, maybe years between the decision to buy a house until you sign the papers.

An update:

Buying a home today, as opposed to times before the fall of the home buying market and the overall economy, is different. The rules have been changed to protect both the buyer, the seller,  and the banks that lend money. It is possible it will not be as easy to buy, but be assured when you have been approved, it will be a more stable agreement.

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