| 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. |
Determine if you have enough down payment to qualify for a mortgage. Ideally, you
should have 20 percent of the purchase price as a down payment
|
| 3. |
Consider other sources of help with a down payment. For example, if you have an IRA
account, you can use money you’ve saved for buying your first home without paying a
penalty for early withdrawal. Also check with your state and local government on down
payment assistance programs for first-time buyers.
|
| 4. |
Get your credit in order. Obtain a copy of your credit report.
|
| 5. |
Determine how large a mortgage you can qualify for. 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. |
Determine if you have to cover your closing costs. Closing costs, including taxes,
attorney’s fee, and transfer fees average between 2 and 7 percent of the home price.
|
| 8. |
Calculate the costs of homeownership, including property taxes, insurance,
maintenance, and association fees, if applicable.
|
| 9. |
Find an experienced REALTOR® who can help you through the process.
|
