Homeowner Preparation!

homeowner preparation

Buying a home can be stressful!  Do your homework before looking at all the lovely homes you’d like to own…here are a few suggestions:

  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.  Even if you’re arranging 100% financing, you’ll still need funds for closing costs.
  5. Meet with a mortgage broker to obtain pre-qualification for your mortgage.   This will tell you how much you can spend on your new home.  Also explore different loans options and decide what’s best for you.
  6. Organize all the documentation a lender will need to pre-approve you for a loan.
  7. Do research to determine if you qualify for any special mortgage or downpayment-assistance programs.
  8. Calculate the costs of homeowner-ship, including property taxes, insurance, maintenance, and association fees, if applicable.
  9. Find an experienced REALTOR who can help you through the process.

Homeowner preparation can take a bit of time but will smooth the process toward closing on your new property!