Purchasing a home can be one of your most significant investments in life. Note only are you deciding on your future home, the community in which you will be raising your family, you are also investing a big portion of your financial assets in the venture. Doing some research and planning before you begin your search will make the entire home buying process less stressful and more manageable.

Top 8 Steps in Preparing for Home Ownership

1. Develop a plan. Every important decision in life needs to be thought out and a plan implemented to reach your goal.
2. Review your financial situation. Make sure your credit report is accurate. Allow enough time to fix any errors.
3. Decide how much home you can afford. Generally, you can afford a home equal in value to between two and three times your annual gross income.
4. Contact a lender who can explain the different types of loans that are available that you qualify for based on your income and debt levels. This will give you an idea of the interest rate, your monthly payment, costs your lender will charge for giving you the loan and a home price range that you can afford to buy.
5. Make a list of what you would like your home to have and prioritize the features in their importance. In other words, what you must have and what you can live without. (download my form for a checklist of your needs and wants)
6. Once you have your price range, you can search online and view the homes that match your criteria. Select neighborhoods you would like to live in. Do you need to find a house that is near your job, public services, or day-care facilities, or are you able to travel some distance to and from work in order to live in a house with a larger yard. Link (Check out how to search on my site and save favorite properties.)
7. Most important, find an agent you can trust and feel comfortable working with to help you find the right home. Communicate clearly to your agent what you like and dislike about properties you view. This will give your agent a better understanding of what you are looking for and what is most important to you. Your agent can guide you through the process and help you avoid costly mistakes and avoid delays.
8. Before making an offer, review the documents you will be required to sign. Ask your agent to explain any terms you don’t understand.