Step 1

Are You Ready to be a Homeowner?

How exciting that you're considering homeownership! The differences between renting and buying a home are vast, and there's a long list of pros and cons for both options. And remember - there is no one best decision for everyone. Before moving forward, though, there are some important considerations to keep in mind.

Affordability should be a main concern. Your monthly income must cover mortgage payments and homeownership costs and still allow you to live comfortably. After all, you still need to pay for food, clothing, transportation and other living expenses, not to mention vacations and the other activities in your life. Nobody wants to end up "house poor"!

Whether homeownership is for you, however, depends on if you are ready both financially and emotionally for the change. After all, buying a home isn't just about money - you should listen to your heart...and take an honest look at your lifestyle.

Step 2

Are You Financially Ready?

So, you've determined that you are emotionally ready for homeownership. Now comes the real test - determining whether or not you are financially ready for this type of investment.

Over the next few pages, you will have the opportunity to fill in some personal financial information to help determine the maximum home price that you should be considering - before wasting your time looking at homes that you can't really afford.

First, though, it is a good idea to evaluate your present household budget. You need to know how much you are currently spending each month on living expenses. This will give you a better idea of whether or not you can afford the extra costs that come with being a homeowner.

Step 3

What Professionals Should You Call On?

Unless you are a seasoned veteran at the homebuying game, you will definitely want a team of professionals in your corner. Of course, there are legal implications to buying property, but it is quite an emotional event, as well. It will give you peace of mind to have experts to call on who can give you the correct answers to your many questions along the way.

During the homebuying process, there are several specialists whom you may choose to hire:

• Real estate agents
• Lenders or mortgage brokers
• Lawyers or notaries
• Insurance brokers
• Builders or contractors
• Home inspectors
• Appraisers
• Land surveyors

Step 4

How Can You Find the Right Home?

Finding the right home is not only about what is contained within the four walls of the structure. Although the inside of your house is important to your needs, comfort level and "feeling at home", the space outside the house should also be taken into consideration when looking for a new home. Many a dream home has been sold by unhappy people who did not consider location in their homebuying decision.

The factors listed here are only a few of the neighbourhood factors you should consider when choosing a new home:

• Is there a lot of heavy traffic in the neighbourhood?
• Will children have to take a bus to school?
• How long a commute will you have to work each day?
• How close together are the homes in the area?

Step 5

Post-Closing Costs

As discussed in Step 3, there are many up-front costs of which you should be informed before jumping feet first into the homebuying process. You should also be aware, however, of some of the post-closing costs that are associated with homeownership. Some of these items and services can really add up and take many new homeowners by surprise.

One expense to consider is that you should change the locks on all doors in your new home as soon as possible after the closing date.

Can you imagine what other types of things may be included on the list of post-closing costs?