10 Steps to Home Ownership
1. Decide how much home you can afford. Generally, you can afford a home equal in value to
between 2 and 3 times your gross income.
2. Develop a wish list of what you’d like your home to have. Then prioritize
the features on your
3. Select three or four neighborhoods you’d like to live in. Consider items
such as schools,
recreational facilities, transportation, and safety.
4. Determine if you have enough saved to cover your downpayment and closing costs.
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.
6. Determine how large a mortgage you can qualify for. Also explore different loans
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
9. Calculate the costs of homeownership, including property taxes, insurance, maintenance
or condo fees if applicable.
10. Find an experienced REALTOR® who can help you through the process.