Vancouver Portland Real Estate Blog

How to Prepare for Home Ownership

I am often asked by young adults what are the first steps they should take in purchasing their first home. Below is a short list of must Dos.

Decide how much home you can afford. A good rule of thumb is; you can afford a home equal in value to between 2 and 3 times your gross income.
Develop a wish list of what you’d like your home to have. Then prioritize the features on your list.
Select three or four neighborhoods you’d like to live in. Consider items such as schools, recreational facilities, area expansion plans, and safety, are there specialty shops that you need?
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.
Get your credit in order. Obtain a copy of your credit report.
Determine how large a mortgage you can qualify for. Also explore different loans options and decide what’s best for you.
Organize all the documentation a lender will need to preapprove you for a loan.
Do research to determine if you qualify for any special mortgage or down payment assistance programs.
Calculate the costs of home ownership, including property taxes, insurance, maintenance, and association fees, if applicable.
Important: Find an experienced REALTOR,, or real estate agent who can help you through the process.