Real Estate Professional
Sandra Warfield
612-845-4833612-845-4833

10 Ways to Prepare for Homeownership


  1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.
  2. Develop your home wish list. Then, prioritize the features on your list.
  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.
  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.
  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 one pay stub, 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 REALTOR®. Find an experienced REALTOR® who can help guide you through the process.

About Sandra Warfield

Picture of Sandra Warfield

Sandra Warfield

612-845-4833

Sandra@SandraWarfield.com

612-845-4833612-845-4833 mobile

13875 Hwy 13 S, Savage, MN 55378

Reviews

5kelly henseler

I have bought/sold realty 3 times now and Sandra is by far my best home buying and selling experience I have ever had! She is professional and friendly and goes above and beyond for her clients. She was ...

5Amy speech12

Sandra is a highly personable, motivated, and responsive. She was was top notch from start to finish. When we first met we were not sure we would list our home. After the first meeting, it was clear ...

5LaurenFisher42

As first time home buyers, we had no idea how to begin the process for finding the right house. Sandra was beyond helpful with walking through the process from touring potential homes, to submitting a ...

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