10 Steps to Prepare for Home Ownership1. Decide how much home you can afford. Generally, you can afford a home equal in value to between 2 and 3 times your gross income. 2. Develop a wish list of what you'd like your home to have. Then prioritize the features on your list.3. Select three or four neighborhoods you'd like to live in. Consider items such as schools, recreational facilities, area expansion plans, and safety.4. Determine if you have enough saved to cover your downpayment and closing costs. Closing costs, including taxes, attorney's fee, and transfer fees average between 2 and 7 percent of the home price. 01/30/2008