The homebuying process can seem complicated, but if you take things step-by-step, you will soon be holding the keys to your own home!

Six steps to buying a home

1. Define what you want
Start by creating a wish list of locations and features you want in your new home. Use it as your search guide.

2. Figure out how much you can afford
What you can afford depends on your income, credit rating, current monthly expenses, downpayment and the interest rate.
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.

3. Shop for homes
It’s time to check out actual properties. Beginning this search online can help save you time since it can help you target homes that meet your needs.
Next, begin visiting homes in person. Ask your local real estate professional to arrange visits and attend open houses that are in your target area and price range.

4. 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.

5. Get a home inspection and shop for homeowners insurance
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.
Lenders require that you have homeowners insurance. Be sure to shop around.

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