Buying a Home

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!
Nine steps to buying a home

1. Figure out how much you can afford
2. Know your rights
3. Shop for a loan
4. Learn about homebuying programs
5. Shop for a home
6. Make an offer
7. Get a home inspection
8. Shop for homeowners insurance
9. Sign papers

Step 1: 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. The calculators below can help, but it is best to visit a lender to find out for sure.
- How much home can you afford?
- Buying vs. Renting
- Home Economics

Need help with your downpayment and/or closing costs?
- Homebuying programs in your state

A housing counselor can help you figure out how to manage and pay off your debt, and start saving for that downpayment!
- Find a housing counselor near you
Step 2: Know your rights
- Fair Housing: Equal Opportunity for All - brochure
- Real Estate Settlement Procedures Act (RESPA)
- Borrower's rights
- Predatory lending
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Step 3: Shop for a loan

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.
- Looking for the best mortgage: shop, compare, negotiate - brochure
- Let FHA help you
- Why Ask for an FHA Loan?
- Learn about interest only loans
- Avoid Predatory Lenders
Step 4: Learn about homebuying programs
- Homebuying programs in your state

FHA loan programs offer lower downpayments and are a good option for first-time homebuyers.
- Let FHA help you
- HUD's special homebuying programs
- Good Neighbor Next Door (formerly known as Teacher/Officer/Firefighter Next Door)
- Hurricane Evacuees discounted sales
- Homeownership for public housing residents
- Indian Home Loan Guarantee Program (Section 184)
Step 5: Shop for a home
- Choose a real estate agent
- Wish list - what features do you want?
- Home-shopping checklist – take this list with you when comparing homes
- Homes for sale (including HUD homes)
- "Fixer-uppers" - home purchase and repair programs
- Manufactured (mobile) homes
- Build a home

If you choose a home in a neighborhood with a Home Owners Association (HOA), be sure to request a copy of the HOA packet, so you can review before closing.
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Step 6: 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.
- Making an offer
Step 7: Get a home inspection

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.
- For Your Protection Get a Home Inspection
- 10 Questions to ask a home inspector
Step 8: Shop for homeowners insurance

Lenders require that you have homeowners insurance. Be sure to shop around.
- Homeowners insurance
- 12 ways to lower your homeowners insurance costs
Step 9: Sign papers

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

READ MORE - Buying a Home

Home Loan Calculators

How much can I borrow?

Find out how much you can potentially borrow for your home loan or home loans.
How much will my home loan repayments be?

Check what your repayments on your home loan would be.
How much stamp duty will I pay?

Check stamp duty fees and charges depending on which state you are in.
Budget Planner

The budget planner will help you better understand your finances.
How will extra payments reduce my home loan?

See how extra repayments can reduce your interest payment and loan term.
How will a lump sum payment reduce my home loan?

Find out how a lump sum payment can reduce your interest and loan term.
Savings Calculator

This simple calculator lets you work out how to achieve your savings goal.
What will my repayments be using a split home loan?

This calculator will let you determine your repayments.
Home loan comparison calculators

Compare two different home loans to see which will save you more.

READ MORE - Home Loan Calculators

SBI improves its home loan offer

With real estate prices dropping, action is hotting up in the home loan market. State Bank of India (SBI), the country’s largest lender, today said that it had improved upon its home loan scheme and would offer home loans starting at 8 per cent in the first year before rising 100-150 basis points in the second and third years. Earlier, SBI had only fixed interest rates during the first year of the tenure of the loan.

In addition, the bank has offered to levy interest on a reducing balance basis and has waived the processing fee for home loans taken up to September.

Within a few hours of SBI’s announcement, LIC Housing Finance, the country’s second-largest mortgage company, said it was reducing the interest rate on floating rate loans for existing customers by 50 basis points.

The largest mortgage player HDFC has not announced a counter-strategy yet, and said it would lower lending rates if the cost of funds went down. For the moment, the home finance company said its effective rate was lower than what SBI was offering.

SBI, which became the largest home loan originator in 2008-09, said it had floated two schemes — Easy Home Loan and Advantage Home Loan.

Under Easy Home Loan, for those borrowing under Rs 30 lakh, the rate has been fixed at 8 per cent during the first year and would be increased 100 basis points to 9 per cent and fixed at that level during the second and third years.

From the fourth year onwards, the customer could choose between the floating rate option, for which the rate is 200 basis points below the State Bank Advance Rate (SBAR), and fixed rate which is 100 basis points below SBAR, with a five-year reset. At present, SBAR is at 11.75 per cent.

For a 20-year loan, the Equated Monthly Installment (EMI) during the first year would be Rs 836 per lakh and would rise to Rs 898 per lakh over the next two years.

Under SBI Advantage, targeted at upper-end home buyers, during the first year, the rate has been fixed at 8 per cent. It would then be fixed at 9.5 per cent during the second and third years. From the fourth year onwards, the customer can choose between a floating rate at 100 basis points below the SBAR and a fixed rate of 50 basis points below SBAR, with a five-year reset.

For a 20-year mortgage, the indicative EMI for the first year would be Rs 836 per lakh in the first year and would rise to Rs 929 per lakh over the next two years.

SBI said that the reduction in SBAR, announced last week and effective from tomorrow, would lower the effective floating rates for existing borrowers 50 basis points.

According to HDFC’s calculations, for those borrowing up to Rs 30 lakh from SBI, the effective rate worked out to 9.35 per cent a year, while for the mortgage player, the rate was 9.25 per cent.

Similarly, for those borrowing over Rs 30 lakh, the effective rate for SBI worked out to 10.09 per cent a year, while it was 9.75 per cent for HDFC.

READ MORE - SBI improves its home loan offer

Obama’s Stimulus for Mortgage Refinance and Loan Modification

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Obama’s government has appeared up with home refinance stimulus package and loan modification programs to help all the needy owners in avoiding foreclosure. This program is designed accurately for all the borrowers who are adverse financially hardships as they are not in an action to accord the loan. The home refinance stimulus package and loan modification would cover as much as 9 million mortgages same way the government would spend $75 billion for helping the homeowners.

Get Your Loan Modification Now

2key components of Obama’s Stimulus Package that are:

1. Home Mortgage Refinance

2. Loan Modification

Let us converse about these components:

1. Home Refinance Stimulus Package

Fannie Mae and Freddie Mac is the powerful government mortgage refinance lending agencies would refinance the home loans of all the owners who owe much more amount to the bank than the actual value of the house. The only condition for this package is that the mortgage has to be an affirmed by Fannie Mae and Freddie Mac, and again even if you are able to pay the additional amount, you can get advantage of the program.

Get Your Loan Modification Now

But this offer is only valid for the residential properties. And this is the major condition to join the stimulus package. Those who are not living in that property will not qualify for Obama’s home refinance stimulus package.

2. Loan Modification Stimulus Package

Obama’s government is providing special incentives to all the lenders for doing loan modification on the present home loans of the borrowers. The home owners can get free of foreclosure, lower interest rate by getting loan modification stimulus package. The key features of this program would be interest rate reduced and it can go down to 2% only, tenure of the loan would be increased to reduce monthly payment amount and borrowers will get waiver of late fees. With loan modification, Lender will also take care of borrower’s total monthly payments and it would not increase than more of the total monthly gross income.

READ MORE - Obama’s Stimulus for Mortgage Refinance and Loan Modification

Mortgage Choice

The simple way to get the home loan that suits you

Mortgage Choice has helped over 250,000 people make their great Australian dream come true. We want to help you too.
What can we do for you?

For a start, we don’t sell our own home loans. We have a panel of top mortgage lenders who have almost 400 home loan products. Our job is to help you find a home loan that best suits you, and take care of all the running around.

Whether you’re a first home buyer, upgrading or downsizing to your next home, buying an investment property or looking to refinance, your local Mortgage Choice broker will compare home loan and lender options, help you choose a home loan that suits you, and get the paperwork done with the minimum of fuss for you. Want to work out how much you can borrow, or how quickly you can repay your loan? Our range of home loan calculators can give you instant answers.

And the service doesn’t stop with your home loan. We’ll be there with you through every step of the process, right up until you move into your property and beyond.

That’s why we’ve received a whole lot of awards, including the coveted Best in the Mortgage and Finance Industry from our industry association, the MFAA (Mortgage and Finance Association of Australia).

READ MORE - Mortgage Choice

Rams

Compare our home loans and find a RAMS home loan that's right for you. RAMS is Australia's specialist home loan lender.

• No deposit home loan

  Looking for a home loan where you can borrow the full purchase price? Ask RAMS.
  

• Looking for a low rate on your home loan?

  RAMS Rate Relief home loan offers a 1% p.a. discount off the RAMS Standard Variable Rate (SVR) for the first two years - plus the on-going rate is guaranteed to stay below the RAMS SVR for the life of your loan.
  

• Lower Standard Variable Rate than the big banks

  The RAMS Home Loans Standard Variable Rate is lower than the big banks. If you're on a standard variable rate with one of the big banks, see how much you could save on your home loan.

• Can't pay the rent and save money for a deposit?

  No worries! A RAMS Fast Track Home Loan could be the perfect solution!
  

• Why pay more just because you’re self-employed?

  Not only could RAMS Home Loans range of Low Doc home loans save you money, you’ll also save time with less paperwork and no need to supply full financials. Check out our RAMS SE Pro Pack Home Loan today!
  

• Do you want to get back in control of your home loan?

  Check out our range of home loan refinancing solutions: RAMS Easy Start, RAMS SmartWay Pro Pack and RAMS Basic home loans. Or request an appointment with a RAMS Home Loans specialist today!

RAMS Home Loans News and Articles

• 18/6/09 - First home buyers expect to pay home loan off sooner
  

  RAMS found that first owners expect to pay off their home loan in the next 15 years. Like to be free of your home loan?.
  

• 18/6/09 - RAMS are doing well in the home loan market

  Although the home loan market has been challenging, RAMS’ home loan settlements have reached the highest amount in its 14-year home loan lending history. Find out more about the home loans records achieved by RAMS, click here.
  

• 3/6/09 - RAMS Wins Money magazine’s Non-Bank
  Lender of the Year Award!

READ MORE - Rams

Wells Fargo Home Mortgage

Three Great Reasons to Refinance
Refinancing provides great opportunities for homeowners. Through refinancing, it may be possible to lower your monthly mortgage payments, enjoy the security of a fixed-rate mortgage, as well as to consolidate other debt to a lower interest rate and a single payment.
Plus, there are three great reasons to refinance today!

1. Historically low rates
2. Government programs that may help you in certain situations
3. Streamlined online refinancing available for existing Wells Fargo Home Mortgage customers

Great news for existing Wells Fargo Home Mortgage customers! Our streamlined online refinance checks your eligibility for government programs, as well as for our current online promotions.
We’ll also evaluate your eligibility for any applicable government programs through an online refinance application. We offer:

* No application or appraisal fees
* No closing costs1
* Loan pricing that is locked once your completed application is submitted2
* Possible streamlined refinance with limited documentation requirements


Note: You’ll need to have your loan number and last four digits of your Social Security number handy to start the process.
> Check Eligiblity Now
Not an existing customer?
Explore other refinancing options. Wondering if refinancing makes sense in your situation?
Request a free break-even analysis to see if refinancing is right for you.
> Get a Free Analysis
Declining property values?
Learn about refinance help from government programs
If your outstanding loan balance is greater than the value of your home, the Home Affordable Refinance Program may be able to help you. This government program can help homeowners to refinance even when the outstanding balance is greater than the value of the home.
It’s designed for homeowners who:

* Have Fannie Mae or Freddie Mac held or guaranteed mortgage loans
* Are current on their mortgage payments
* Have been unable to refinance their mortgage loans because the home’s value has declined
* Have an adjustable-rate mortgage (ARM), interest-only or balloon mortgage

READ MORE - Wells Fargo Home Mortgage

Commonwealth Bank

Buying your first home can be an exciting, yet daunting experience. So let us help you understand the process to prepare for the purchase of your first home.

You’ll find all the support you need to get you into your dream home, with a Home Loan that best suits your needs.

Step by step guide

• Finding your first property
• Financing your home
• The buying process
• Home buying costs

Getting into the market

• 12 month pre-approval
• First Home Owners Grant
• First Home Stamp Duty

Home Loan basics

• Quick guide to understanding Home Loans
• Product comparison table

READ MORE - Commonwealth Bank