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10 Steps to Home Ownership

1. Are You Ready?
   
   Do You Know What You Want?
   Whether you are a first-time homebuyer or entering the marketplace as a repeat buyer, you need to ask why you want to buy. Are you planning to move to a new community due to a lifestyle change or is buying an option and not a requirement? What would you like in terms of real estate that you do not now have? Do you have a purchasing timeframe?
   
   Do You Have the Money?
   Homes and financing are closely intertwined. (Financing is the difference between the purchase price and the downpayment, commonly referred to as debt or the mortgage.) The good news is that over the years new and innovative loan programs have evolved. In addition to a down payment, purchasers also need cash for closing costs (the final costs associated with closing the loan).
   
   Is Your Financial House in Order?
   You should assure that every credit card bill, rent check, car payment and other debt is paid in full and on time.



2. Get a REALTOR ®
   
   Why?
   Buying and selling real estate is a complex matter. At first it might seem that by checking local picture books or online sites you could quickly find the right home at the right price.
   
   But a basic rule in real estate is that all properties are unique. No two properties — even two identical models on the same street — are precisely and exactly alike. Homes differ and so do contract terms, financing options, inspection requirements and closing costs. Also, no two transactions are alike.
   
   In this maze of forms, financing, inspections, marketing, pricing and negotiating, it makes sense to work with professionals who know the community and much more. Those professionals are the local REALTORS ® who serve your area.
   
   How do you choose?
   The experiences and recommendations of past clients can be invaluable.
   
   In many cases buyers will interview several REALTORS ® before selecting one professional with whom to work.

These interviews represent a good opportunity to consider such issues as training, experience, representation and professional certifications.

3. Get Loan Preapproval
   REALTORS ® routinely suggest that consumers start the mortgage process well before bidding on a home.
   
   REALTORS ® also recommend preapprovals for another reason: Purchase forms often require buyers to apply for financing within a given time period, in many cases, seven to 10 days. By meeting with loan officers in advance and identifying mortgage programs, it won't be necessary to quickly find a lender, check credit, and rush into a financing decision
   Buying and selling real estate is a complex matter.
   that may not be the best option.
   
   What is it?
   “Preapproval” means you have met with a loan officer, your credit files have been reviewed and the loan officer believes you can readily qualify for a given loan amount with one or more specific mortgage programs. Based on this information, the lender will provide a preapproval letter, which shows your borrowing power. You can visit as many lenders as you like and get several preapprovals, but keep in mind that each one carries with it a new credit check, which will show up on future credit reports.
   
   Although not a final loan commitment, the preapproval letter can be shown to listing brokers when bidding on a home. It demonstrates your financial strength and shows that you have the ability to go through with a purchase. This information is important to owners since they do not want to accept an offer that is likely to fail because financing cannot be obtained.
   
   How do you get preapproval?
   Real estate financing is available from numerous sources. Based on his or her experience, the REALTOR ® may suggest one or more lenders with a history of offering competitive programs and delivering promised rates and terms.
   
   The loan officer will carefully review your financial situation, including your credit report and other information. The lender will then suggest programs which most-closely meet your needs. For instance, a firsttime buyer may qualify for state-backed mortgage programs with little money down and low interest rates,