Preparing to Buy Your Home

Common first-time homebuyer mistakes:

• They don't ask enough questions of their lender and miss out on the best deal.
• They don't act quickly enough to make a decision...and someone else buys the house.
• They don't find the right real estate agent who is willing to help them through the home buying process
• They don't do enough to make their offer (or home) look good to a seller.
• They don't think about the resale before they buy. (The average first-time buyer only stays in a home for four years.)

Ten steps to help you prepare for buying your first home:

• 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.
• Develop a wish list of what youÕd like your home to have. Then prioritize the features on your list.
• Select three or four neighborhoods youÕd 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, attorneyÕs fee, and transfer fees average between 2 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 whatÕs 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.
• Contact me—I can help you through the process.