Finding a house that you can afford sometimes takes years of saving. When you're ready to buy a home, several people get involved. They include realtors, inspectors, lawyers, and loan officers.

GETTING STARTED

Most people need to borrow money to buy a home. Good credit helps you qualify for a mortgage. To borrow money, you need to have good credit and a down payment. Usually home buyers can borrow up to 2 1/2 times of their yearly income. If someone makes $25,000 a year, the loan can be up to about $63,000. It's good to know how much you can afford before you contact an agent or visit open houses.

FINDING HOMES AND REAL ESTATE AGENTS

Look for houses listed in newspapers, home magazines, or on the internet. Or ask friends, relatives, or coworkers who own homes to recommend an agent or broker. Look for an agent who is licensed and associated with the Mutiple List Services. Ask agents:

• What is their training?
• How many homes have they sold?
• Do they have experience in the neighborhood where you want to live?
• What are their commission fees?

Agents help find homes and help you sign a purchase agreement with the owner. A purchase agreement is legally-binding. Understand the terms before you sign it. The agent may help find an inspector and Title company.

WHAT'S NEXT

Home inspectors identify problems. Lawyers review purchase agreements, and make sure seller deliver documents and provide a title. Closers assure that documents are in order, agreed upon and signed.

SEVERAL AGENCIES HELP HOMEBUYERS:

• "Home Stretch," from the Home Ownership Center, takes mystery out of home buying. Contact www.hocmn.org or call 651 659-9336 to find a class.
• The U.S. Department of Housing and Urban Development (HUD) guarantees FHA loans for low- to moderate-income homebuyers.
• The Minnesota Housing Finance Agency offers loans for moderate income and first-time buyers. Call 651-296-8215 or 1-800-710-8871 to find a lender.

For more information, visit INFO-U number 837 "Credit." Visit INFO-U document 653 to learn "How to Get a Home Loan."