10 Keys to Home Ownership
(Linda can guide you through all the steps)
* DECIDE WHAT YOU CAN AFFORD. The best way to do this is with a visit to your lender -- that way you will know what price range you can search in.
* GET YOUR CREDIT IN ORDER. Obtain a copy of your credit report to make sure it is accurate and correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.
*DETERMINE YOUR MORTGAGE QUALIFICATIONS. How large of mortgage do you qualify for? Also, explore different loan options with lender -- such as 30-year or 15-year fixed mortgages. Decide which might be best for you.
* GET PRE-APPROVED. Organize all the documentation a lender will need to pre-approve you for a loan. You will need W-2 forms, copies of latest pay stubs, account numbers and copies of two to four months of bank or credit union statements.
*WEIGH OTHER SOURCES OF HELP WITH A DOWN PAYMENT. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local ogvernment on down payment assistance programs for first time buyers. Or, if you have an IRA account, you can possibly use some of the money to buy your first home without paying a penalty for early withdrawal.
*CALCULATE THE COSTS OF HOMEOWNERSHIP. This should include property taxes, insurance, maintenance and utilities, and association fees if applicable.
*DEVELOP YOUR "VISION OF HOME." Separate the needs from the wants and understand that you can get some of each but maybe not all of the above.
*SELECT WHERE YOU WANT TO LIVE. Compile a list of three to four neighborhoods or areas you'd like to live in, taking into account items such as schools, medical facilities, parks, shopping, cultural events.
*START SAVING. Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally you should have 20 percent of the purchase price saved. And don't forget to factor in closing costs. Closing costs - average average between 4-7 percent of the home price. Your lender will advise all of the costs.
*MOST IMPORTANT. Contact me and I will gladly help insert your key into your new front door!
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