There is nothing quite like that first moment when you turn the key in the door, walk into your newly purchased home, and realize that it is all yours. No more noisy apartment neighbors clomping around upstairs. No more paying rent to someone else. You are home—and it is all yours. Below are ten steps that can get you started to owning your own piece of the American Dream.

1. Contact a Realtor®. “Work with a Realtor® who is knowledgeable, ethical and passionate about the business and compassionate about the people he or she works with.” -Alan Mehrwein, principal broker with RE/MAX Equity Group, Inc.

2. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

3. Develop your home wish list. Then, prioritize the features on your list. No home will be 100% perfect, but you’ll find one that is right for you. “Your Realtor® will look diligently for the properties that best fit your needs, and will be an irreplaceable source of information, negotiating skill, preparation, and security for your transaction. The multiple listing service is the source of property information, but you need the knowledge of a Realtor® who is committed to monitoring new listings, price changes, and properties that come back on the market!” -Gary Majors, principal broker with Ken Hoffman, Inc., Realtors®.

4. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, commute time and safety.

5. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment?  Also, don’t forget to factor in closing costs and incidental costs for inspections. Closing costs — including taxes, lenders fees, and escrow fees— average between two and seven percent of the home price.

6. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments. “Stop buying ‘toys,’ and don’t add to your current debt. What are you willing to ‘give up’ in order to be able to purchase a home?” notes Deana Doney, broker with RE/MAX Equity Group, Inc.

7. Determine your mortgage qualifications. How large of a mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.

8. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

9. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your Realtor® about down payment assistance programs for first-time buyers.

10. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

By the Portland Metropolitan Association of Realtors®