10 Steps to Prepare for Homeownership

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’d like your home to have. Then prioritize the features on your list

Select three or four neighborhoods you’d like to live in. Consider items such as schools, recreational facilities, area expansion plans, and safety

Determine if you have enough saved to cover your downpayment and closing costs. Closing costs, including taxes, attorney’s fee, and transfer fees average between 2 percent and 7 percent of the home price

Get your credit in order

Obtain a copy of your credit report

Determine how large a mortgage you can qualify for. Also explore different loans options and decide what’s best for you

Organize all the documentation a lender will need to preapprove you for a loan

Do research to determine if you qualify for any special mortgage or downpayment-assistance programs

Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable

Find an experienced REALTOR^Ò who can help you through the process

Reprinted from REALTOR Magazine Online by permission of the National Association of Realtors

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