Benefits Of Ownership

 7. Get pre-approved. Organize all the documentation a lender will need to pre-approve you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four

months of bank or credit union statements.

 

                                                                     8. Weigh other sources of help with

                                                                     a down payment. Do you qualify for

                                                                     any special mortgage or down

                                                                     payment assistance programs?

                                                                     Check with your state and local

                                                                     government on down payment

                                                                     assistance programs for first-time

                                                                     buyers. Or, if you have an IRA

                                                                     account, you can use the money

                                                                     you’ve saved to buy your fist home

                                                                     without paying a penalty for early

                                                                     withdrawal.

 

                                                                    9. Calculate the costs of

                                                                    homeownership. This should include

                                                                    property taxes, insurance, maintenance and utilities, and association fees, if applicable.

 

 10. Contact a REALTOR®. Find an experienced REALTOR® who can help guide you through the process, I am here to help. Contact me at [email protected]

 

1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

 

2. Develop your home wish list. Then, prioritize the features on your list.

 

3. Select where you want to live.

Compile a list of three or four

neighborhoods you’d like to live in,

taking into account items such as

schools, recreational facilities,

area expansion plans, and safety.

 

4. Start saving. Do you have enough

money saved to qualify for a simple

mortgage and cover your down

payment? Ideally, you should have

20 percent of the purchase price

saved as a down payment. Also, don’t

forget to factor in 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 to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.

 

6. Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.