10 Steps to Prepare for Home Ownership
- Find an experienced
REALTOR® who can help you through the process.
- Decide how much home you
can afford. Generally, you can afford a home
equal in value to between two and three times
your gross income.
- Develop a wish list of
what you would like your home to have. Then,
prioritize the features on your list.
Select three to four
neighborhoods in which you would like to live.
- Consider items such as schools, recreational
facilities, area expansion plans and safety.
- Determine if you have
savings sufficient to cover your down payment
and closing costs. Closing costs, including
taxes, attorney's fees and transfer fees average
between two and seven percent of the home price.
- Get your credit in order.
Obtain a copy of your credit report.
- Determine how large a
mortgage for which you qualify. Also, explore
different loan options and decide what is best
for you.
- Organize all the
documentation a lender will need to pre-approve
you for a loan. This includes past income tax
returns, recent pay stubs, etc.
- Do research to determine
if you qualify for any special mortgage or down
payment assistance programs.
- Calculate the costs of
homeownership, including property taxes,
insurance, maintenance, and association fees, if
applicable.
Copyright
NATIONAL ASSOCIATION OF REALTORS®, reprinted with
permission. |
