STEP 1: PREPARE FOR HOME OWNERSHIP

Here's some easy things you can do to prepare yourself BEFORE searching for that perfect home:

•   Write down your financial goals, both short term and long term.  For example:  Buy a house within 1 year; Be debt-free within 10 years.  Get the entire family involved in this process!  If everyone is focused on the same goals, then it's easier to make sacrifices together.

•   Prepare a monthly family budget.  Your housing payment should be no more than 1/3 of your gross monthly income.  Your monthly debts (including car payments, child support, and credit card payments) should be 10 - 15% of your income.  Contact your financial planner for assistance.

•   Upgrade your credit score.  Get a copy of your credit report free at www.AnnualCreditReport.com.  Review it for accuracy and correct erroneous items.  Clear up unresolved items such as defaulted student loans or charge-offs.  Pay all credit payments on time for at least 6 months.

•   Eliminate consumer debt.  Do NOT purchase an automobile or make any other major purchases on credit.  This will change your credit score, and probably also your loan payment affordability ratios.

•   Save money.  You will need money for an initial deposit, your downpayment, home inspections and other expenses, and closing costs.  This is where you'll need to make sacrifices by cutting back.  But when you focus on your goal of home ownership, it's easier to see what priorities are most important.

•   Take a course.  Learn about home ownership and the process of buying a house.  Take a first-time home buyer course if it's offered in your community.  Educate yourself, search the internet for free info on "homeownership".

•   Change your mindset.  Because being a home owner requires a different mindset than renting - when something breaks, you can't just call your landlord.  You are responsible for the maintenance and repairs.

SEE ALL OF THE STEPS HERE (click on the links below)

1. PREPARE FOR HOME OWNERSHIP

2. GET READY TO SHOP FOR HOUSES

3. FIND A HOUSE

4. MAKE YOUR OFFER

5. ITEMS COVERED IN PURCHASE CONTRACT

6. NEGOTIATIONS

7. DURING ESCROW

8. CLOSING ESCROW

9. YOUR NEW HOME

Are you ready?  Let's go! Take your first STEP today towards making your DREAM a reality!

Join my new AR group and post your blog at http://activerain.com/groups/virtualoffice

Regina P. Brown
Broker, Realtor®, e-Pro
Author of eBook "Stop Foreclosure Fast: Solutions to Save your House"

Text copyright © 2009 R.P. Brown, All Rights Reserved