Even in this tough recession homes are still being bought and sold, even if the pace is much slower than the boom years of the past. Many buyers are eager to take advantage of the US Government’s tax rebate for first time buyers.
There are several steps that smart homebuyers take when purchasing a house.

For those new to home buying here are the first five steps to buying a home.

Step 1: Know How Much You Can Afford

This is the crucial first step. Skip it and you may find yourself in the same situation many are facing right now: Losing you home to foreclosure. The amount will depend on your income, expenses, down payment, and credit rating. Take the time to determine how much you can afford before house hunting. A trusted lender can help you with this step.

Step 2: Learn Your Rights

Buying a home is a legal transaction and there are local and federal laws that govern the process. Research and find out about Fair Housing, Borrower’s Rights, Predatory Lending, and the Real Estate Settlement Procedures Act. Your lender can help and there are also government brochures available on all these topics.

Step 3: Shop for the Best Loan

Many people make the mistake of finding the home before they find the loan. Often this forces them to rush the loan process so they do not lose the house. Find the loan first by talking with several different lenders. You should discuss the different types of loans, interest rates, and terms. Find the best loan and consider being preapproved and you’ll be one step closer to home ownership.

Step 4: Learn About Special Home Buying Programs

The federal government and individual states have home buying programs that have helped many people finance and buy a home. Many of these are geared toward first home buyers and may involve tax rebates, grants, and low interest loans.

Step 5: Shop for a Home

Finally, the fun step! Now that you know how much house you can afford, and may be preapproved for a loan and enrolled in a home buying program, you are ready to start house hunting. You probably already know where you want to buy and the style of home. If you don’t have a real estate agent already you may want to choose one now. They can make your hunt much easier and often know about properties that are not listed yet but about to go on the market. In addition you can conduct online searches and read newspaper real estate sections. Another option is to build and in this case you’ll need to find a reputable builder or real estate development company.

House hunting is a different experience for everyone. Some find the perfect house in days, while others spend months searching. It is important to have patience, and find a house that will become your home. If you have done your homework, and the first four steps, you will be in a great position to take the final steps to buying a home when you find the perfect house.