Buying a home is the single largest purchase that most people make in their lifetimes. If you’re a bit confused about the whole process, don’t feel alone. Nearly all home buyers felt the same way at one time or another, even if they’ve purchased once in the past. Plus, home purchases are much more complicated today then they ever have been. So, don’t worry – we can help. Here’s a bit of advice to get you started.

Is this the right time?
The first thing to realize is that buying a home is an individual thing. When your friends and family say “now’s the right time to buy” they might be referring to the fact that interest rates are low, or that local inventory is high, or you just received a raise at work. But all buyers’ need to look at their own individual circumstances to determine if it’s the right time to buy, check out Are You Ready for Homeownership for some great questions to ask.

What to do next?
Now that you’ve determined that you might be ready to buy. What’s next? Your best first step is to get educated about the home buying customs routinely practiced where you live. Relatives or friends who live in other areas, or states, or who might have purchased more than a few years ago might have some good general advice for you, but chances are the current local process is very different. So avoid the mistake of relying solely on their advice to make this important decision and Get Educated!

Take care when considering this option though, not all education courses are created equally. Many, if not most of the down-payment assistance programs explained on this site require that the borrower, or when purchasing with a spouse or other adult, both borrowers, complete an approved homeownership education course. These courses usually consist of at least 10 hours of classroom instruction and are ONLY offered by HUD approved counseling agencies. A FREE consumer class offered by a mortgage or real estate company may provide you with some good information but will NOT satisfy the education requirement for down-payment assistance.

Mary and Bob Willett volunteer as instructors for the Home Loan Counseling Center in Sacramento. You can find their HUD approved schedule of classes at www.hlcc.net.

I’ve heard there are special programs for first-time buyers, how do I find out about these options?
Don’t miss out on unique loan opportunities, down-payment assistance or other funding that may be available to you as a first time buyer. Many buyers’ fail to take advantage of opportunities because they are not aware they exist, others may think they are eligible for more assistance than they actually are.

Most of the confusion comes from a very broad definition of who actually is a first time buyer. Did you know you can use some “first-time buyer” programs even if you have owned a home before? Special programs and government assistance are tied to income, so some “first-time buyer’s” actually make too much money for these types of opportunities. Find out more specifics here.

So really, what’s out there to help the first time buyer?

What are the general steps to the Home Buying Process?