First Home Buyers Guide: Your Homeownership Journey
Buying your first home is a huge deal, guys! It's like, a major milestone. It's exciting, a little scary, and definitely a lot of work. But don't worry, we're here to break it all down for you. This guide is packed with everything you need to know, from figuring out if you're ready to signing on the dotted line. So, let's dive in and get you prepped to become a homeowner. We'll go through the whole shebang, from saving up that down payment to navigating the mortgage maze, and understanding all the legal stuff. Sound good? Let's go!
Is Buying a Home Right for You?
So, before you start scrolling through real estate listings, let's make sure this whole homeownership thing is a good fit for you. Buying a home isn't just about having a place to live; it's a financial decision, a lifestyle change, and a serious commitment. To start, let's look at your financial situation. Are you consistently managing your bills and debt? Do you have a solid savings plan, and are you on track with that? Lenders will want to see that you're responsible with money. This usually includes having a good credit score, which is super important. Get those credit reports in order, look for any mistakes, and fix them. Make sure you have some money saved up for a down payment. Ideally, you'll want at least 5-20% of the home's price, plus closing costs. This is a big one, guys. Consider your employment stability. Lenders will like to see a steady employment history. Are you planning on staying in the same job or area for a while? If you are jumping around jobs, that will definitely make it difficult. Owning a home means you'll be tied to a location, so think about your long-term plans. Do you plan to start a family soon, or do you need to be close to your family? These are important. Now, let's also talk about the lifestyle aspect. Are you ready for the responsibilities of homeownership? There's maintenance, repairs, and property taxes, plus other costs. Do you enjoy yard work, home improvements, or are you ready to hire someone to take care of all that stuff? Renting is usually more straightforward; you call the landlord when the toilet overflows, but as a homeowner, you are the landlord. The freedom to paint the walls any color you want is a great benefit, but you're responsible for everything, so you need to weigh those pros and cons. Finally, consider the market conditions. Are house prices going up, or are they going down? What are the interest rates like? Real estate markets can change quickly, and it's essential to be aware of the current trends in your area. Understanding these things will help you make the best choice for you, so let's figure this out.
Assess Your Financial Readiness
Alright, let's dig into the nitty-gritty of your finances, because this is where the rubber meets the road, folks. Being financially ready to buy a home means more than just having some cash in the bank; it's about demonstrating that you can handle the financial responsibilities of homeownership. Firstly, checking your credit score is super important. This is a three-digit number that lenders use to determine how risky it is to lend you money. A good credit score can get you better interest rates and terms on your mortgage. So, make sure to review your credit report from all three major credit bureaus: Experian, Equifax, and TransUnion. Look for any errors, like incorrect accounts or negative marks that aren't yours, and get them fixed ASAP. Next up, is your debt-to-income ratio (DTI). This is a crucial metric that lenders use to see how much of your income goes towards paying off debts. It's calculated by dividing your total monthly debt payments by your gross monthly income. Lenders usually like to see a DTI below 43%, but the lower, the better. This includes things like car payments, student loans, credit card bills, and any other debts you're carrying. Reducing your debt before applying for a mortgage can seriously improve your chances of getting approved and can help you get better loan terms. Now, the big one: saving for a down payment. Most mortgages require a down payment, which is the upfront amount you pay towards the purchase price of the home. The larger your down payment, the less you'll have to borrow and the better your interest rate might be. While it is possible to get a mortgage with a smaller down payment (as low as 3% in some cases), you'll likely have to pay for private mortgage insurance (PMI) until you have 20% equity in the home. Also, plan for closing costs. These costs include things like appraisal fees, title insurance, and recording fees. Closing costs typically range from 2% to 5% of the purchase price. It's essential to budget for these, as they can add up quickly. Finally, let's talk about calculating your monthly mortgage payment. Use an online mortgage calculator to estimate your monthly payments. Factor in the interest rate, the loan term, property taxes, and homeowners insurance. Make sure this fits comfortably within your budget. You don't want to stretch yourself too thin. Remember, guys, financial readiness isn't just about having the money; it's about showing lenders that you are responsible, organized, and ready to handle the financial commitment of homeownership. So, get your finances in order, and get ready to step up to the plate.
Understanding the Costs Involved
Okay, so, let's break down all the costs involved in buying a home. It's not just about the sticker price, guys; there's a whole bunch of other expenses you need to be aware of. This will help you avoid any nasty surprises and ensure that you can handle the financial commitment. First up, the down payment. As we talked about, this is the upfront payment you make towards the home's purchase price. The size of your down payment will affect the size of your loan, your monthly payments, and whether you'll need to pay for private mortgage insurance (PMI). Next are closing costs. These are the fees and expenses you pay at the closing of your home purchase. They typically range from 2% to 5% of the purchase price. These include things like: Lender fees (origination fees, underwriting fees), appraisal fees (a professional assessment of the home's value), title insurance (protects you and the lender against any issues with the property's title), recording fees (fees charged by the local government to record the property transfer), and property taxes (prorated for the period you own the home). Then there are ongoing monthly costs. This includes your mortgage payment (principal, interest, property taxes, and homeowners insurance), homeowners insurance (protects your home from damage or loss), and property taxes (paid annually or semi-annually). Don't forget about potential extra costs, such as private mortgage insurance (PMI) – if your down payment is less than 20%, you'll likely have to pay PMI, which protects the lender if you default on your loan. Homeowners association (HOA) fees (if the property is part of an HOA, you'll pay monthly or annual fees for amenities and maintenance). Also, be aware of the costs of home maintenance and repairs. Homeownership comes with the responsibility of maintaining your property. You'll need to budget for regular maintenance, such as lawn care, cleaning, and any needed repairs. Having a home inspection done before you buy a home is important. This will help you identify any issues that need to be addressed and give you a good idea of any potential repair costs down the line. Finally, don't forget about moving expenses. This includes things like hiring movers, renting a truck, or buying packing supplies. Buying a home is a big investment, so knowing all the costs involved upfront will ensure that you can handle the financial commitment, and it'll help you make informed decisions throughout the process.
Finding the Right Home for You
Alright, now that you've got a handle on the financial stuff, let's move on to the exciting part: finding your dream home, or at least a home that you’ll love. This is where the fun really begins, so let's get started. Firstly, determine your needs and wants. Before you start looking at listings, make a list of your must-haves and your nice-to-haves. Must-haves are things you absolutely can't live without, such as the number of bedrooms, bathrooms, and a location that fits your needs. Nice-to-haves are things you'd like to have, but can live without, such as a garage, a yard, or a particular style. Understanding these will help you narrow your search and save you time. Next is choosing the location. Consider things like proximity to work, schools, shopping, and entertainment. Research the neighborhoods you're interested in. Look into things like crime rates, school ratings, and future development plans. Drive around and see what the area is like. You'll want to know what the neighborhood vibe is. Now, let's work with a real estate agent. A good real estate agent can be an invaluable resource. They can help you find properties that match your criteria, schedule viewings, and guide you through the offer and negotiation process. They know the market, so find an agent you trust and feel comfortable working with. Start searching for properties. There are several ways to find homes for sale: online real estate portals (like Zillow and Realtor.com), your real estate agent's network, and local listings. Create a list of properties that match your criteria and start scheduling viewings. When you view properties, pay attention to the layout, the condition, and any potential issues. Do the windows open and close easily? Does the roof look like it's in good shape? Get a feel for the home's energy and whether it's a good fit for you. Finally, consider home inspections and appraisals. Before you make an offer, it is a good idea to get the home inspected by a professional. They'll look for any potential problems that may need to be addressed. You'll also need to get the home appraised to determine its fair market value. The lender will want this. Buying a home is a big decision, so take your time, do your research, and don't be afraid to ask questions. If you have your plan, you can find a home that's perfect for you.
Working with a Real Estate Agent
Okay, let's talk about one of the most valuable allies you'll have in this whole process: your real estate agent. Finding a good real estate agent is super important, and they can really make a difference in the process. So, here's what you need to know. First, find the right agent. Ask your friends, family, and colleagues for recommendations. Look for an agent with a solid reputation, experience in your local market, and good communication skills. Make sure they're licensed and have a proven track record. Set up a meeting and interview potential agents. This is how you can see if you guys click. Talk about your needs and expectations and see if they're a good fit. They'll also explain their process and fees, so you know what to expect. Also, understand the agent's role. Your agent will guide you through the home-buying process, help you find properties, schedule viewings, negotiate offers, and handle paperwork. They're your advocate, so make sure they're looking out for your best interests. Now, let's talk about the benefits of using an agent. An agent knows the local market, has access to listings, and can help you negotiate the best possible price. They'll also handle a lot of the logistical details, such as coordinating inspections and appraisals. How to communicate effectively. Keep your agent informed of your needs and preferences. Respond promptly to their communications and be available to view properties and discuss offers. Give them feedback on the properties you've seen and be honest about what you like and don't like. Finally, understanding agent fees and contracts. Real estate agents typically work on a commission basis. This commission is usually paid by the seller. Your agent will have a contract outlining their services, fees, and duration of the relationship. Read it carefully and ask questions if anything is unclear. Working with a real estate agent can significantly simplify the home-buying process, saving you time, money, and stress. They're your guide and your advocate, so make sure you find an agent you can trust and who you can work with throughout the whole experience.
Essential Steps for Viewing Properties
Alright, guys, let's go through the important steps to take when you're out there viewing properties. This is your chance to get a real feel for a potential home. So, here's what you need to do. First off, prepare before the viewing. Review the listing details and photos beforehand. Make a list of questions to ask the real estate agent or seller. Try to visit the property during the daytime, so you can see things better. Next, arrive on time and be prepared. Bring a notepad and pen to take notes. Wear comfortable shoes, as you'll likely be doing a lot of walking. Don't be afraid to bring a tape measure if you want to measure a room or a specific area. During the viewing, evaluate the condition of the property. Look for any signs of damage or needed repairs. Check the condition of the floors, walls, and ceilings. Open and close windows and doors to ensure they work properly. Turn on faucets and flush toilets to check for leaks and water pressure. Now, assess the layout and functionality. Consider the layout of the rooms and how the space flows. Visualize how your furniture will fit in each room. Think about storage space, such as closets and cabinets. Ensure the layout matches your lifestyle. Consider the neighborhood and surroundings. Pay attention to the overall atmosphere and environment of the neighborhood. Is it a quiet street? Is it near amenities you need? Walk around the block and check out the nearby streets. Ask questions. Don't be shy about asking the real estate agent or seller questions. Ask about the property's history, any known issues, and any included appliances. Take the time to fully inspect the property. You don’t want to find out there are major problems later. After the viewing, take notes and reflect. Review your notes and photos. Think about what you liked and didn't like about the property. Compare it to other properties you've seen. Once you’re done, you'll have a better idea of whether this home is the right one for you. Viewing properties can be a lot of fun, and it's a critical step in finding your ideal home. By following these steps, you'll be better equipped to make an informed decision.
The Mortgage Process Demystified
Alright, let's tackle the mortgage process, which, let's be honest, can seem a bit overwhelming, especially for first-time homebuyers. But don't worry, we're going to break it down into easy-to-understand pieces. The mortgage is basically the loan you get to buy the home. Let's start with getting pre-approved for a mortgage. This is a crucial first step. Getting pre-approved means a lender has reviewed your financial information and has given you a preliminary approval for a specific loan amount. This helps you know how much you can afford, and it gives you a stronger position when you make an offer on a home. To get pre-approved, you'll need to provide the lender with financial information, like your income, employment history, assets, and debts. Now, let's talk about choosing the right type of mortgage. There are several different types of mortgages, and the best one for you will depend on your financial situation and your needs. Some common types include: fixed-rate mortgages: these have an interest rate that stays the same for the life of the loan, and adjustable-rate mortgages (ARMs): these have an interest rate that changes over time, usually based on an index. There are also government-backed loans, such as FHA loans: these loans are insured by the Federal Housing Administration and are available to borrowers with lower credit scores or smaller down payments and VA loans: these are offered to veterans and active-duty military members. Conventional loans are not backed by the government. Then there is the mortgage application process. Once you've found a home you want to buy, you'll need to formally apply for a mortgage. You'll need to provide the lender with detailed financial information, including your income, employment history, assets, and debts. The lender will verify this information and may require an appraisal of the property. After your application is processed and approved, the lender will issue a loan commitment, which is a promise to provide the mortgage. During the underwriting process, the lender will review your application and supporting documents to ensure you meet the requirements for the loan. This process can take a few weeks. They'll verify your income, credit score, and assets, and they'll assess the value of the property. After approval, the loan closing process is next. Once your loan has been approved, you'll move towards closing. This is when you sign the final loan documents and the funds are disbursed to the seller. You'll need to pay closing costs at this time. Before the closing, it's good to review the loan documents carefully and ask any questions you have. Getting a mortgage can seem like a complex process, but by understanding the steps involved and working with a reputable lender, you can navigate the process successfully.
Understanding Different Mortgage Types
Alright, let's get into the different mortgage types, because understanding the options will help you make the best choice for your needs. As we said, these are the most common, so let’s dive in. First off, we have fixed-rate mortgages. These are pretty popular, and they're exactly what they sound like: the interest rate stays the same for the entire term of the loan, typically 15 or 30 years. The advantage here is stability, so your monthly payments won't change, making it easier to budget. You know what you're going to pay each month. Fixed-rate mortgages are a good choice if you like predictability and want to protect yourself from rising interest rates. Next, let's talk about adjustable-rate mortgages (ARMs). The interest rate on an ARM starts lower than a fixed-rate mortgage. But after an initial fixed period (like 5, 7, or 10 years), the interest rate adjusts periodically, usually annually, based on market conditions. The risk here is that your interest rate could go up, increasing your monthly payments. ARMs can be good if you plan to sell the home before the rate adjusts or if you think interest rates will stay low. Government-backed loans are also a possibility. FHA loans are insured by the Federal Housing Administration. They're available to borrowers with lower credit scores or smaller down payments. FHA loans can be a good option if you don't have a perfect credit history or you don't have a lot saved for a down payment. VA loans are offered to veterans and active-duty military members. These loans often have no down payment requirement and don't require private mortgage insurance, making them a great option for those who qualify. Conventional loans are not backed by the government, so the requirements may be stricter. You may need a higher credit score and a larger down payment, but they are a good option for those who qualify. Choosing the right type of mortgage depends on your individual financial situation, your risk tolerance, and your long-term financial goals. Now, you have the knowledge to pick the best one.
The Mortgage Application Process
Alright, let's break down the mortgage application process. This is the step where you actually apply for the loan to finance your home purchase. Here's what you need to know, guys! First, gather your documents. You'll need to provide the lender with a lot of financial documentation. This includes things like: proof of income (W-2s, pay stubs), bank statements (showing your assets), tax returns (usually the last two years), and information about your debts. This will help the lender verify your financial situation. So, start collecting these documents as soon as you decide to buy a home. Now, fill out the mortgage application. You'll need to complete a mortgage application, either online or on paper. The application will ask for information about your personal background, employment history, income, debts, and the property you're buying. You'll also need to authorize the lender to pull your credit report. Make sure you answer the questions accurately and honestly. Lenders take this very seriously. Then comes the lender's review. After you submit your application, the lender will review all your information to determine if you meet the requirements for the loan. This process is called underwriting. They'll verify your income, employment history, credit score, and assets. They'll also assess the value of the property you're buying. After that, there will be a property appraisal. The lender will order an appraisal of the property to determine its fair market value. The appraisal is done by a licensed professional. The lender needs to make sure the property is worth what you're paying for it. Then the underwriting process, which is the lender's review of your application. They'll scrutinize all your documents and information. They'll verify everything, looking for any red flags that could impact your ability to repay the loan. This can take some time, so be patient. Then comes the loan approval. If the lender approves your loan, they'll issue a loan commitment. This is a promise to provide the mortgage, assuming you meet all the conditions of the loan. If you get approved, it’s time to close. So, get your stuff ready. This is the loan closing time. This is the final step. You'll sign all the loan documents and pay the closing costs. You'll also need to bring a certified check or wire funds to cover the down payment and closing costs. The lender will then disburse the funds to the seller, and the property is officially yours. The mortgage application process can seem complicated, but by being organized, honest, and prepared, you can get through it successfully. So, make sure you get those documents together and you will be ready to buy a home.
Making an Offer and Closing the Deal
Alright, so you've found the perfect home and you're ready to seal the deal. This is where you'll learn how to make an offer, negotiate, and finally, close the deal. It's an exciting, but sometimes stressful, part of the home-buying process. First, let's talk about making an offer. Work with your real estate agent to prepare an offer. The offer will include the purchase price, any contingencies (like a home inspection), and the proposed closing date. Your real estate agent can help you determine a fair offer price based on comparable sales in the area. Be sure to carefully review the offer before you submit it. Then, negotiating the offer. The seller can accept your offer, reject it, or make a counteroffer. If they make a counteroffer, you can accept, reject, or make another counteroffer. This negotiation process can go back and forth until you reach an agreement. Your real estate agent will negotiate on your behalf, but it is important to stay informed throughout the process. After that, handling contingencies. Most offers include contingencies, which are conditions that must be met before the sale can be finalized. Common contingencies include a home inspection, a financing contingency (meaning the sale is dependent on you securing a mortgage), and an appraisal contingency (which states the home must appraise for at least the purchase price). Be sure to understand the contingencies in your offer and the deadlines for meeting them. Before closing, you'll prepare for the closing. This is where you review all the loan documents and ask any questions you have. You'll also need to arrange for a final walkthrough of the property to ensure it's in the same condition as when you made the offer. At the closing, you'll sign all the final paperwork, pay the closing costs, and receive the keys to your new home. The closing is typically handled by a title company. Be sure to bring the necessary funds for closing. The closing process is the final step. It's important to remain calm and organized throughout the process. And finally, after all that work, you'll finally own a home.
Negotiating the Purchase Price and Terms
Alright, so you've made an offer on a home. Now it's time to negotiate the purchase price and other terms of the deal. Here's what you need to know. First, let's talk about understanding the market. Know the current market conditions. Is it a buyer's market or a seller's market? Are there many homes for sale or few? This will affect your negotiating strategy. In a buyer's market, you may have more leverage to negotiate a lower price or more favorable terms. In a seller's market, you may need to make a stronger offer to compete with other buyers. Review comparable sales. Your real estate agent can provide you with a list of comparable sales (comps) in the area. Comps are recent sales of similar homes in the same area. Comparing the property you're interested in to comps will help you determine a fair market value and will give you a basis for your offer. Now, making your initial offer. Work with your real estate agent to determine the appropriate purchase price and terms for your initial offer. Your agent can help you assess the property's value, taking into account factors like condition, location, and recent sales data. The offer should also include any contingencies, such as a home inspection or a financing contingency. Now, let's understand the seller's perspective. Put yourself in the seller's shoes. What are their motivations for selling? Are they motivated to sell quickly, or are they willing to wait for the right offer? This will help you determine how flexible they might be on price and terms. Then responding to counteroffers. The seller may accept your offer, reject it, or make a counteroffer. If they make a counteroffer, carefully review it and consider your options. You can accept the counteroffer, reject it, or make another counteroffer. Now, let's negotiate strategically. Stay calm and professional throughout the negotiation process. Be prepared to walk away if you can't reach an agreement on price or terms. Make sure you're comfortable with the terms before you sign on the dotted line. And that's it! If you get a house, you did a great job. Negotiating the purchase price and terms can be a challenging process, but by being informed, strategic, and realistic, you can successfully negotiate a deal that's good for everyone.
Preparing for the Home Inspection and Appraisal
Okay, so you're moving along, and it's time to prepare for the home inspection and the appraisal. These are two important steps in the home-buying process, and they can have a big impact on whether the deal goes through. Let's get to it. Firstly, the home inspection. The home inspection is a professional assessment of the condition of the property. A qualified inspector will examine the home's structure, systems, and components, looking for any potential problems or needed repairs. You'll need to hire an inspector and schedule the inspection. Your real estate agent can recommend a reputable inspector. Make sure you're present during the inspection. This gives you the opportunity to ask questions and learn more about the property. After the inspection, the inspector will provide you with a written report detailing their findings. This report will list any defects or issues they found, along with recommendations for repairs. Review the report carefully. Use the report to negotiate with the seller. You may be able to ask the seller to make repairs or to reduce the purchase price to cover the costs of repairs. The appraisal is next. The appraisal is an assessment of the property's fair market value. Your lender will require an appraisal to ensure the property is worth the amount you're borrowing. The lender will hire a licensed appraiser to conduct the appraisal. The appraiser will assess the property's value based on factors like comparable sales, location, and condition. Be prepared to provide the appraiser with access to the property and any information they may need. If the appraisal comes in at or above the purchase price, you're good to go. But if the appraisal comes in lower than the purchase price, you'll need to renegotiate the price with the seller, make up the difference with a larger down payment, or walk away from the deal. This whole process is for you. Getting a home inspection and appraisal are essential steps in the home-buying process. By taking these steps, you'll be better informed about the property's condition and value, which will help you make a smart decision and protect your investment.
After Closing: What to Expect
Congratulations, guys! You've closed on your new home! But the journey doesn't end there. There are still a few things you need to do after the closing. So, let's talk about what to expect. First of all, moving in. Schedule your move. Make sure you've coordinated with movers or arranged for help from friends and family. Pack your belongings carefully and label boxes clearly. On moving day, be sure to be at the house. Before you start moving your things, make sure to do a final walkthrough of the property. Make sure everything is in the same condition as when you made your offer. Now, setting up utilities. Contact the utility companies to set up services for your new home. This includes things like electricity, gas, water, and internet. Make sure to do this in advance of your move-in date to avoid any interruptions in service. Then comes changing your address. Notify the post office of your new address. Change your address with banks, credit card companies, and other important institutions. You can also change your address with the DMV and update your driver's license. Now for homeowner's insurance. Make sure you have adequate homeowner's insurance coverage. Your lender will require you to have insurance. Your policy should cover the structure of your home and your personal belongings. Finally, home maintenance and upkeep. Now that you own a home, you're responsible for maintaining and upkeeping the property. This includes things like lawn care, regular cleaning, and making any necessary repairs. Take the time to get familiar with your new home and its systems. After closing, you'll be responsible for handling all of these things. Now, you have a home of your own.
Understanding Homeowner's Insurance
Okay, let's talk about homeowner's insurance. It's a must-have when you buy a home, and it's designed to protect your investment. Here's what you need to know. First, what homeowner's insurance covers. Your homeowner's insurance policy will protect your home from damage or loss due to a wide range of events. This includes things like: fire, wind damage, theft, and certain types of water damage. Also, homeowner's insurance will also protect you from liability claims. This means if someone is injured on your property, your insurance can help cover the cost of medical bills and legal expenses. Next up is choosing the right coverage. When selecting a homeowner's insurance policy, it's important to choose the right level of coverage. Your policy should cover the full replacement cost of your home. The amount of coverage you need will depend on the size and value of your home, as well as the cost of rebuilding in your area. Also, consider the amount of liability coverage you need. Most policies provide at least $100,000 in liability coverage, but you may want to consider increasing your coverage depending on your personal circumstances. Now, let's talk about understanding policy terms and conditions. Read your homeowner's insurance policy carefully and understand the terms and conditions. Pay attention to the exclusions, which are events that are not covered by your policy. This includes things like: flooding, earthquakes, and certain types of mold damage. Know the deductible, which is the amount you'll need to pay out-of-pocket before your insurance coverage kicks in. Understand the claims process, which is the process you'll need to follow if you need to file a claim. To file a claim, you'll need to contact your insurance company and provide them with information about the loss. If you understand the insurance, it will provide peace of mind knowing that your home and your belongings are protected. Homeowner's insurance is important.
Maintaining Your Home and Planning for the Future
Alright, guys, let's wrap things up by talking about home maintenance and planning for the future. Owning a home is a long-term commitment, so you'll want to take care of your investment and make sure it continues to meet your needs. First, create a home maintenance schedule. Develop a schedule for regular maintenance tasks, like cleaning gutters, inspecting the roof, and servicing your HVAC system. Regular maintenance can prevent costly repairs down the road. Now, let's talk about budgeting for repairs and improvements. Set aside a budget for repairs and improvements. Homeowners often underestimate the costs of home maintenance. You'll want to have a cushion of money for those unexpected repairs. Then you'll want to plan for future projects. If you plan to make any major renovations or improvements to your home, start planning early. Get quotes from contractors, and create a budget. Home projects can be a lot of fun! Now, let's talk about considering home value appreciation. Real estate is an investment, and the value of your home may increase over time. Keep an eye on the local real estate market and monitor property values. Now, planning for your long-term goals. Think about your long-term goals. Do you plan to stay in your home for many years, or will you need to move at some point? Think about your family plans. Will your needs change? Do you plan to have children or need more space? It is important to plan ahead. Make sure to protect your investment. By maintaining your home, you can protect your investment and enjoy your home for many years to come. Taking care of your home will help you to maximize your investment and achieve your long-term goals. So, now you’re ready to own a home.