Are you ready to buy?

Market conditions are favorable for first-time buyers, but that doesn't necessarily mean you're ready to make the leap. Here are some tips to help you decide if you're ready for home ownership.

1. Take a first-time home buyer class. It will give you an overview of the steps you need to take to be ready to buy a new home and cover items such as the Pro's and Con's of buying, the hidden costs of home ownership, and Do’s & Don'ts for the home buying process. Here are some upcoming classes offered through Minneapolis Community Education.

2. Get pre-approved. Talk to a lender at the beginning of the homebuying process. They can advise you if there are some things you should do to improve your credit score first, then pre-approve your financing. By arranging for financing before you start looking for a home, you'll know exactly how much you qualify for. It may save you the heartache of falling in love with a home you can't afford or losing the right home for you because your financing isn't ready. Here's a mortgage checklist to help you prepare for your loan application.

3. Be conservative. The longer you plan to stay in the home you're buying the more you may want to stretch, but be careful not to stretch too much. Borrowing too much can mean stretching and sacrificing to the point that it's hard to enjoy life in your new home.

4. Consider all the costs. Remember that it's not just a mortgage payment you have to worry about. Be sure to also budget for utility costs, maintenance and repairs.

5. Play house. Try banking the additional amount you'd have to pay if you owned a home each month for a few months to get a better sense of what the payments will feel like. It can help you determine if you're ready for the real thing...as well as build a cache of funds you can use for your move.