Steps to Prepare for Home ownership

1. Decide how much home you can afford. Generally, you can afford a home equal in value to between 2 and 3 times your gross income.

2. Determine if you have enough down payment to qualify for a mortgage. Ideally, you should have 20 percent of the purchase price as a down payment

3. Consider other sources of help with a down payment. For example, if you have an IRA account, you can use money you've saved for buying your first home without paying a penalty for early withdrawal. Also check with your state and local government on down payment assistance programs for first-time buyers.

4. Get your credit in order. Obtain a copy of your credit report.

5. Determine how large a mortgage you can qualify for. Also explore different loans options and decide what's best for you.

6. Organize all the documentation a lender will need to pre approve you for a loan.

7. Determine if you have to cover your closing costs. Closing costs, including taxes, attorney's fee, and transfer fees average between 2 and 7 percent of the home price.

8. Calculate the costs of home ownership, including property taxes, insurance, maintenance, and association fees, if applicable.

9. Find an experienced REALTOR¬ who can help you through the process.