1. Why should I buy, instead of rent?

  2. Should I use a real estate broker? How do I find one?

By the way, if you want to buy a HUD home, you will be required to use a real estate broker to submit your bid. To find a broker who sells HUD homes, check your local yellow pages or the classified section of your local newspaper.

  1. How much money will I have to come up with to buy a home?

When you make an offer on a home, your real estate broker will put your earnest money into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you. The amount of your earnest money varies. If you buy a HUD home, for example, your deposit generally will range from $500 - $2,000.

The more money you can put into your down payment, the lower your mortgage payments will be. Some types of loans require 10-20% of the purchase price. That's why many first-time homebuyers turn to HUD's FHA for help. FHA loans require only 3% down - and sometimes less.

Closing costs - which you will pay at settlement - average 3-4% of the price of your home. These costs cover various fees your lender charges and other processing expenses. When you apply for your loan, your lender will give you an estimate of the closing costs, so you won't be caught by surprise. If you buy a HUD home, HUD may pay many of your closing costs.

  1. How do I know if I can get a loan?

  2. How do I find a lender?

  3. In addition to the mortgage payment, what other costs do I need to consider?

  4. So what will my mortgage cover?

  5. What do I need to take with me when I apply for a mortgage?

  6. I know there are lots of types of mortgages - how do I know which one is best for me?

  7. When I find the home I want, how much should I offer?

  8. What if my offer is rejected?

  9. So what will happen at closing?

  10. More information?
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