10 Steps in Preparing for Home Ownership

• 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.