10 Ways to Prepare for Homeownership

Feb. 4, 2012 - PRLog -- 1.Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income. So take a serious look at your finances and evaluate what your priorities are and budget accordingly.

2.Develop your home wish list. Then, prioritize the features on your list.  Do you need three bedrooms?  Do you want stainless steel appliances?  First divide your list into two categories: needs vs. wants and then rank them 1-10.

3.Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.

4.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 as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price. So if you want a house that has an asking price of $100,000 (for ease of calculations) you will want to have at least $25,000 in your savings.

5.Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments. There are three major credit bureau's, be sure to check all three.

6.Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.

7.Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least two pay stubs, account numbers, and copies of two to four months of bank or credit union statements.

8.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 government on down payment assistance programs for first- time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.

9.Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10.Contact a professional real estate agent. Find an experienced professional who can help guide you through the process.  Crye-Leike Realtors is well known in the south.   We are #1 in the mid-south and #6 in the nation with a proven track record.  Fred Yancy, has over 25 years experience in the real estate market.  

If you or someone you know is in the market to buy or sell your home in the Atlanta, GA area, give Fred Yancy a call at (678) 799-4663 or email at fred.yancy@crye-leike.com   We look forward to serving you.

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Serving real estate needs for the Atlanta GA area including Mountain Park, Berkely Lake, Johns Crek, Milton, Buck Head and more! We specialize in residential sales and leasing.

We welcome the opportunity to assist with your move. Our proven home selling program can assist in the marketing of your home, finding the right buyer, and closing the sale with the lowest level of stress. Our years of experience combined with up to date technology, allows us to attract buyers within or outside the Atlanta Georgia area. Whether you are relocating from across town or across the country, we can provide the local knowledge and superior service needed to make your home buying move as smooth as possible.