If you were to demand 100 women "What would you dote on to conclude financially?" Buying a native or mansion is usually one of the answers. Some women postulate that they can never sit on a home - which is not true! In fact, there are so many success stories of home buyers who never thought they would get there. In addition, homeowners tend to have greater financial success in the other areas of their finances life. Ive seen it over and over.

The benefits of owning a home include: building equity, saving money on taxes and an integral step towards building wealth. With interest rates so low, this is a great environment to buy a home. This article is a checklist with tips and guidelines to buying a home. If you already own a home, some of these tips will be helpful for refinancing your home. Real estate is not a substitute for stocks but it plays a big part in your financial fitness.

1) CHECK YOUR CREDIT. Get a recent a copy of your credit report, especially your FICO score (the score lenders use to determine your interest rate). Check out www.myfico.com.

2) HOW MUCH HOME CAN YOU AFFORD? Start with your monthly payment and plug it into a mortgage calculator. (Great one on www.eloan.com: Affordability Calculator). This site tells you how much home you can afford assuming certain numbers. For example, if you make $6,000 per month before taxes, you can afford anywhere from $125,000 to $345,000 assuming $25,000 as a down payment. There are different choices with the actual monthly payments. If you don't have enough saved for a down payment, create a separate savings account and come up with a savings schedule. Only borrow what you can afford!!!

3) ORGANIZE YOUR DOCUMENTS. Get together the following documentation: past 3 years of tax returns, recent paychecks, bank statements, investment statements and all other financial statements.

4) WHICH MORTGAGE IS THE BEST FOR YOU? Understand the different mortgage options. Most are based on a 30-year amortization cycle: fixed-rate, adjustable and a hybrid. Hybrids are very popular now; fixed rate for a certain amount of time and then they adjust annually. Consider a 15- or 20-year fixed rate mortgage. The payments will be a bit higher, but you will end up paying much less interest over the course of the mortgage and be debt-free much sooner!

5) SHOULD YOU PAY POINTS? A point is equal to 1% of your loan amount. You pay a point to receive a lower interest rate on your loan. If you get a low enough rate, paying points can be worth it.

6) SHOP AROUND. Work with a mortgage broker or check out a few mortgage websites: www.e-loan.com, www.bankrate.com

7) PRE-APPROVAL 6 MONTHS BEFORE BUYING A HOME. Get pre-approved for a loan from the bank or your mortgage broker. It gets the process going faster and in a competitive market, it gives you the edge.

8) MINIMIZE YOUR DEBT. Avoid big-ticket purchases so not to add to your debt load.

9) SAVE MONEY ON TAXES. Points paid for a first-time home (not for refinancing) can be deducted in the year your home was closed.

10) BE CAREFUL OF COSTS. Dont ignore transaction costs and watch closing costs very carefully. There are also many hidden costs of home buying: moving, minor renovations (especially if you are buying an older home). Make sure you are prepared.

11) DIVERSIFY, DIVERSIFY, DIVERSIFY. Don't tie up all your assets in your home.

12) PAY YOUR MORTGAGE AUTOMATICALLY. Get it taken from bank account automatically every month. You dont ruin your credit and dont forget to pay every month on time.

13) REFINANCING? Shop around for act on rates. Start with the bank that currently holds your mortgage. It may apportion you a just work pertinent to sustenance your business. Avoid blooming points. When you refinance, you can deduct express a board of the points each year, wherefore it's usually not a opportune deal. Don't venture to outsmart the sell and wait for act on rates to inquire their glum point. If the numbers inaugurate singularity for you, go for it.

14) PMI INSURANCE. You will have to pay monthly PMI insurance if you put down a down-payment less than 20%. Once you are paying your mortgage for more than a year, ask your lender to reconsider.

15) BAD CREDIT? DON'T HAVE ENOUGH FOR A DOWN-PAYMENT? You can mitzvah your investments or securities as uniform for buying a home. Consider a low-documentation, no mark or sub-prime mortgage. You consign skin a added transform scale but it commit help build your credit and equity. Also, pass on out these weight agencies: Freddie Mac www.freddiemac.com. Fannie Mae www.fanniemae.com. www.hud.gov/fha.

16) OTHER MORTGAGE OPTIONS: Bi-weekly mortgages, Customized mortgages usually offered by special banks, Use risk portfolio as consonant and a smaller wherewithal down-payment.

17) HOME INSPECTION. Have an peekaboo done by someone with accreditation (www.nahi.org).

18) REMODELING? If you remodel, be hustling about keeping records. The right improvements can slightness your taxable gains when you sell.

19) CAN'T AFFORD TO BUY NOW? But want to get into real estate? Check out REIT stocks or REIT mutual funds, www.investinreits.com.

Galia Gichon is the Founder of Down-to-Earth Finance, which offers Unbiased Financial Education. She has worked with thousands of people, has an MBA in Finance and over 13 years financial experience. Please visit http://www.downtoearthfinance.com. You can subscribe to her bi-monthly e-mail newsletter for tips to add fun to your finances, spending smarter and understanding investing at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it