Homeownership is at an all-time high in North America, not just because of low interest rates, but also because more and more people are realizing the benefits, such as:
Credit - having a mortgage that you pay on time every month improves your credit
Investment - the value of homes today are appreciating which helps you build equity. That makes real estate a good investment.
Pride - there's nothing like the feeling of owning your own home.
Tax Advantages - interest on your home is tax deductible

It takes three things to buy a house: some cash, dependable income and good credit. If you fall short in any of these areas, don't worry. There are plenty of programs out there to help achieve homeownership no matter what your financial situation.

Getting Started
Before you begin the home buying process you should do the following:
1.Determine Your Objectives - Why do you want to buy a home? Need more room? Downsizing? Tired of paying rent?
2.Determine Your Needs - Prioritize what is most important to you in a home (style of home, size of home, neighborhood, schools, cost, etc.) Keep in mind, there is a difference between what you need and what you want. So be realistic.
3.Become Informed - If you're a first-time buyer, learn everything you can about the process. Research the market by looking at classified ads and homes magazine to get a feel for what's available, drive around neighborhoods you're interested in, scan the Internet and maybe even talk to a Realtor® if you decide you want their help.
4.Get Your Financing in Order - This is not the time to make any major purchases on a credit card. Don't change types of work.

Knowing What You Can Afford
The first thing you need to decide is how much you can afford. Determining this early in the process will save you a lot of time and frustration. Not only will you have a clearer idea of the amount you can spend, but you can also eliminate all those homes that are not in your range. You may even find that being pre-approval opens the doors to types of homes that you hadn't considered before.

Before you begin searching for a home, you should take a few steps to prepare for financing:
1.Credit Report Contact a credit bureau and get a credit report on yourself, just to make sure your report is accurate. If you don't like what you see, it's time to try to clean up any problem items or clear up any mistakes. You may also want to consider contacting a consumer credit counselor for help.
2.Save Money Skip a vacation, movie or dinner out to save money for a down payment and closing costs. Try not to buy anything on credit and if you do, pay it off quickly. Try to avoid taking on another large credit expense or even applying for another credit card.
3.Get Pre-Approved for a Mortgage It pays to get pre-approved for a mortgage early in the process. Some think pre-qualifying for a loan is enough, but it's not. Pre-approval gives you more power when you've found that perfect house.
a.Buying Power - Lets you know in advance how much you can afford to spend on a home.
b.More Control - You have the negotiating power of a "cash" buyer when you can prove that you have financing in place.
c.Faster Closing - You can close in as little as 15 days compared to the 60 days if you're not yet approved.
d.Saves Money - You can lock in an interest rate early for a faster closing and better rate. (Ask your lender about a 30-day rate lock instead of the normal 60 days.)
4.Get Your Financing in Order This is not the time to make any major purchases on a credit card. Don't change types of work.
Next Page