10 Steps to Prepare for Homeownership by Scott Nichols

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 downpayment and closing costs. Closing costs, including taxes, attorney’s fee, and transfer fees average between 2 percent 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 options and decide what’s best for you.

7.      Organize all the documentation a lender will need to preapprove you for a loan.  Call Scott Nichols for a list of qualified Lenders.

8.      Do research to determine if you qualify for any special mortgage or downpayment-assistance programs.

9.      Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.

10.  Call Scott Nichols^Ò who can help you through the process.

Today is a perfect storm for Home Buyer’s!  Interest rates are at an all time low, there are many, many homes on the market to choose from, Home owners are distressed and prices are fantastic!

The most important thing to remember is when you purchase your home:

1. Do not take out equity, work hard to pay down your mortgage.

2. Think of the big picture – long term 7-10 years of ownership OR more.

It’s simple….follow these 2 rules and you WILL be rewarded!