10 Steps to Prepare for Homeownership
1. 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.
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 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.
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 preapprove you for a loan.
8. Do research to determine if you qualify
for any special mortgage or downpayment-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.
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