Getting Started

Before you start looking for a home you should ask yourself a few questions.

Where do you want to live? Do you want to be close to schools, shopping, or work? What kind of house would you like (need)? Are you looking for a particular style? How many bedrooms and bathrooms do you want? What size of a house do you want? Do you want a yard? Home much house can you afford?

Here is some help.

10 Steps to Prepare for Home Ownership

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. A good way to determine how much your payment will be is to take 1% of the loan value and that should be close to your monthly payment (This includes your payment, taxes, hazard insurance and interest)

2.        Develop a wish list of what you'd like your home to have. Then prioritize the features on your list. Are you willing to do a little remodeling for a better price? There are bank foreclosures where you can get a better price because of the need for improvement. Your B4 representative is a good source to get these listings.

3.        Select three or four neighborhoods you'd like to live in. Consider items such as schools, recreational facilities, area expansion plans, and safety. You can go to your local city official website for additional information. By telling your B4 representative you want a 3 bedroom in a certain city can bring up thousands of listings. Provide more detail on what you are looking for and we can get you your house. 

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 and 7 percent of the home price.  Keep in mind of out of pocket expenses as Inspection, Appraisal etc. These are items you may have to pay for prior to closing. There are many lenders with 100% loans, but you will still need closing costs.

5.        Get your credit in order. Obtain a copy of your credit report. Contact a credit repair agency if necessary.

6.        Determine how large a mortgage you can qualify for. Also explore different loans options and decide what's best for you. There are many 100% loans with excellent rates. You can figure on 1% of the loan to be your monthly payment (this includes taxes and insurance).

7.        Organize all the documentation a lender will need to pre-approve you for a loan. Items such as:

          * Proof of address of past 2 years.

          * Employer name and address last 2 years.

          * Copy of last 2 years W-2 forms.

          * Pay stubs covering full 30 day period (indicating YTD)

          * SSN# and and Drivers License Number for all applicants. 

          * Last 3 month bank statements (must show name, address, account#/balance)

          * List of creditors (i.e. car loans, charge accounts).

          * Statements reflecting stocks, bonds, real estate, life insurance values and bank statements. 

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

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

10.   Contact your B4 Realtor immediately to locate your new home.