Buying a Home 101

Buying a home is an exciting experience. When you decide to purchase a home, everyone around you will be equally elated, including your children, relatives, friends, coworkers, etc. It's a big momemt in your life.

As joyful as the home buying experience can be, it can also be confusing at times. The following is a step by step guide:

1. Decide how much you can afford to spend on a home. Our mortgage loan calculators can help you figure this out. This step is important because it sets the tone for what kind of homes and neighborhoods you can include in your home search.

2. Shop for a loan.

Home Mortgage Loans for credit scores between 600 and 650

Home Mortgage Loans for credit scores 670 and above

Anyone who has been through the mortgage loan process, will tell you to get at least three or four loan quotes before you settle on a loan product. Whether you have great credit or bad credit, you have a better chance of getting a low interest rate by shopping around. Different lenders can vary on rates (using the same credit score as a measure) as much as 1 point, which translates to thousands of dollars over the lifetime of your loan.

3. Shop for a home. You will notice that shop for a loan" comes before "shop for a home". This is no coincidence. Most home sellers require buyers to be prequalified for a mortgage loan before allowing the potential buyer to make an offer. In other words, the seller wants to ensure that you, the buyer, has the financial means to purchase their home.

4. Make an offer. Once you have secured a mortgage loan and selected the home of your dreams, you can make an offer to the home seller. This offer can be equal, below or higher than their listing price depending on whether it's a buyer's market or seller's market.

5. Get a home inspection. A home inspection is important, because it allows you to get a true sense of the quality of the home. For example, if a home has termites or mold, you might not be able to see the damage from a home walkthrough but a good home inspector can point out these deficiencies.

6. Shop for homeowners insurance. Insurance is one of those services, where you always want to shop for the cheapest service you can get. According to the director of the Consumer Federation of America, you can pay more than double for the same insurance policy. Get homeowners insurance quotes.

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Home Purchase Loans

Interest Rates

TodayLast WeekChange
30 YR Fixed 5.86% 5.81% Up 0.05%
15 YR Fixed 5.48% 5.42% Up 0.06%
5/1 ARM 5.49% 5.37% Up 0.12%
30 YR Fixed Jumbo 6.12% 6.07% Up 0.05%
5/1 ARM Jumbo 5.62% 5.55% Up 0.07%
***Note: JUMBO Mortgages are home loans over $417,000.

Average Home Prices

Price
Metro Washington D.C. - Arlington - Alexandria - MD $432,900
Baltimore - Towson - MD $265,100
Allentown - Bethelehem - Easton - PA - NJ $243,400
San Diego - Carlsbad - San Marcos - CA $607,400
San Francisco - Oakland - Fremont - CA $718,000
San Jose - Sunnyvale - Santa Clara - CA $747,000
Sacramento - Arden - Arcade - Roseville - CA $380,900
Sarasota - Bradenton - Venice - FL $374,900
San Antonio, TX $136,800
Pittsburg, PA $114,300
Chicago - Naperville - Joliet - IL $265,600
Las Vegas, - Paradise - NV $315,900
New Orleans - Metairie - Kenner - LA $181,200
Minneapolis - St. Paul - Bloomington - MN - WI $230,500
Albuquerque, NM $174,100
Little Rock - North Little Rock - AR $125,900
Salt Lake City, UT $182,300
Boulder - CO $349,500
Boston - Cambridge - Quincy - MA - NH $397,500
Atlanta - Sandy Springs - Marietta - GA $170,200
Seattle, Tacoma - Bellevue - WA $335,200
Tuscon, AZ $245,200
Hartford - West Hartford - East Hartford - CT $253,800
Knoxville, TN $148,800
Jackson, MS $142,500
Miami - Fort Lauderdale - Miami Beach - FL $391,200
Dover, DE $185,700
Charleston - WV $117,300
Charlotte - Gastonia - Concord - NC $183,500
Cleveland - Elyria - Mentor - OH $135,700
Kansas City - MO - KS $156,500
Montgomery, AL $136,300