This year I will buy a house!

The first step in buying a home is figuring out how much house you can realistically afford, according to the folks at Delta Financial Services.     

To find that magic number, take the monthly note and multiply it by 12 months.   If the total works out to about 25% of your gross income, you just might have found a home you can afford.   HINT: don’t forget to add in money for insurance and property tax.  

Delta Financial Services in Zachary offers  a 12-step plan for achieving home ownership:

1. Find a lender. Ask friends, family or co-workers for referrals; speak with local real estate agents; search the Internet.

2. Fill out a loan application.

3. Get an estimate of closing costs from the lender you choose (a good faith estimate).   The lender is required to provide this statement to you within three days of receiving the loan application. Make sure to ask what type of loan program your lender has selected for you, including the rates, terms and any special information, such as prepayment penalties.

4. Compare costs, fees and terms.   Shop around and see who will give you the best deal.

5. Negotiate fees. Sometimes you can negotiate the amount of fees or the loan points (a point is one percent of the loan amount) the lender charges you.  

6. It is usually not wise to pay any discount points .   You are basically paying for an interest rate you don’t really need.

7. Provide required documentation.  

8.   Pay any up-front fees, such as the appraisal fee. Sometimes the lender requires that the credit report or processing fee be paid at the beginning.

9.   Review loan papers carefully. Approximately one week prior to closing, loan papers will be ready for your review. Make sure the loan matches the original quote you were given.

10.   Sign your loan papers and deposit your down payment funds into your account four to six days prior to closing.

11.   Bring a cashier's check for the down payment to the title company, escrow company or attorney handling the closing. The lender will send the title company a check for the loan amount.