how to own a home

The first step to home ownership is to become pre qualified for home financing. The easiest way to do this is to contact a mortgage broker.

Once you are prequalified, you should talk to a real estate agent. The real estate agent is the person that will show you the homes in your price range, as well as write the offer to purchase for you. If you do not know a real estate professional, then you can ask your mortgage broker for a list of people that they have done business with in the past.

It is important to buy a home with payments that you will be able to comfortably afford. Let your mortgage professional know how much you wish to pay each month, and they will tell you what amount of home you can afford with that payment. Then your real estate agent will be able to find you a home in that price range.

In 2005, nearly 45% of all first time home buyers purchased their homes with 100% financing. In some cases, they accomplished this with 2 loans, such as one for 80% of the total amount and a second for 20%. In other cases, the 100% financing was with a single loan for the full amount. I can help you determine if one of these programs is right for you.

If you can not find a home you like in the price range you worked out with your mortgage professional you may want to consider some other types of loans. Other types of loans such as Interest Only, 40 year terms, and a variety of ARMs will allow you to afford higher priced home while keeping you payments lower.

If you plan on buying a home in a year or so, you should make it your goal to save as large of a downpayment as you can afford. The easiest way to get the best deal on your mortgage may be making a down payment. As little as 5% down can make a big difference in your interest rate and monthly payment.

» DISCLAIMER: The information contained in this article on 'how to own a home' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.