The housing market is experiencing the worst downturn in forty years. The house prices are attractive, and the interest rates are at an all time low. It is a buyers market, and there are plenty of deals that you can take advantage of…but before you plunge into buying a house it would be helpful to know a few details about the housing market and the buying process. Buying a home in the Washington, D.C. metropolitan area can be an excellent investment. The housing market in this area is one of the most active in the nation and less volatile than many other states.

If you buy a home, for the first time, however, the buying process can seem complicated and quite overwhelming. Therefore, your first step is to contact the Relocation Specialists who are available to provide you with valuable advice on all aspects of the home buying process. The Housing Advisor at the World Bank can refer you to experienced real estate agents, lay out financing options, clarify your doubts about visiting properties, suggest strategies for negotiating a sales contract and specify home inspection requirements.

In general, steps in the home buying process are:

It is a good idea to ascertain how much you can afford by obtaining in a pre-qualification letter from a mortgage company or the Bank-Fund Staff Federal Credit Union. Bear in mind that house payments should not exceed about 30% of your gross income. From a financial standpoint it is generally considered unwise to buy unless you plan to remain in the home for at least three years.

Define the style of the house that you want, the number of rooms, bathrooms, garages etc.

Location. Location. Location. The importance of where you want your house to be located cannot be understated. When you choose the area you want to live in keep in mind schools, child care, transportation facilities, neighborhood and living environment all play a crucial role in your day to day life.

There are numerous ways to begin your housing search; you can find classified advertisements in local newspapers. The Saturday and Sunday Washington Post and City Paper are good resources. You can use the internet to find a house of your choice, but be aware that web advertisements may not be reliable and may not have up-to-date information regarding the availability of the property. Remember, if it looks too good to believe, then you are probably not getting complete information. You can also look through the Bank's internal electronic bulletin board.

After knowing what you want, how much you can afford and where you want to live, the next important step would be to contact a real estate agent (Realtor). Your Realtor will get paid by the company or builder listing the property and the assistance you receive will be at no cost to you. However, many real estate agents will request that you sign a Buyer's Agent agreement. This states that the buyers' agent (your Realtor) is being retained by you to help you find the best deal. Sign this agreement only after you identify a realtor that you feel meets your needs.

Make sure you thoroughly read the sales contract and addendum that will be used. Understand your obligations and rights as stated in the contract.

Once you have identified a house and negotiated the sale, the final step is for you to sign the sales contract. Before you sign the contract or any other document make sure that you understand and feel comfortable with the content of the document you are about to sign.