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10 Steps to Prepare for Home Ownership:
1. Decide how much home you can afford.
Generally, you can afford a home equal in
value to between 2 and 3 times your gross
income.
2. Develop a wish list of what you’d like
your home to have. Then prioritize the
features on your list.
3. Select three or four neighborhoods you’d
like to live in. Consider items such as
schools, recreational facilities, area
expansion plans, and safety.
4. Determine if you have enough saved to
cover your down-payment and closing costs.
Closing costs, including taxes, attorney’s
fee, and transfer fees average between 2 and
7 percent of the home price.
5. Get your credit in order. Obtain a copy
of your credit report.
6. Determine how large a mortgage you can
qualify for. Also explore different loans
options and decide what’s best for you.
7. Organize all the documentation a lender
will need to pre-approve you for a loan.
8. Do research to determine if you qualify
for any special mortgage or down-payment
assistance programs.
9. Calculate the costs of homeownership,
including property taxes, insurance,
maintenance, and association fees, if
applicable.
10. Find an experienced REALTOR® who can
help you through the process. |
