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10 Smart 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 down payment 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 pre-approve you for a loan.
8. Do
research to determine if you qualify for any special mortgage or down
payment-assistance programs.
9. Calculate
the costs of homeownership, including property taxes, insurance, maintenance,
and association fees, if applicable.
10. Find an
experienced realtor, like Medina Realty, who can help you through the process.Source: ©2005 National
Association of Realtors. |
