By Teri Gauthier

A few decades ago, typical homebuyers were young married couples who wanted to set down roots and begin raising families. Maybe both partners had jobs; perhaps Mr. went off to work while Mrs. stayed home with the children. That was the American Dream most people sought to fulfill.

Many women are now buying homes on their own once they're financially secure.

Fast forward 20 years and changing demographics have dramatically altered the typical homeowner profile.

By the year 2010, the number of women-owned households in the United States is expected to reach nearly 31 million and make up more than a quarter of all households in the country, according to research gathered by Fannie Mae, the privately owned company that makes low-cost capital available to mortgage lenders across the country. In addition, a study by Harvard University concluded that the homeownership rate for female-headed households rose to 53 percent in 2000, up from 48 percent in the early 1980s.

As women take control of their lives and make independent decisions regarding their financial issues, their own versions of the American Dream come into focus.

In Santa Barbara County, where housing prices tend to rise disproportionately to salaries and wages, saving for a downpayment makes getting into a house particularly challenging. Women looking to buy homes should find out if their employers belong to the Coastal Housing Partnership (CHP), an organization formed in 1987 by local employers who anticipated the dearth of affordable housing. CHP currently has over 65 employer members from ABC-Clio to Yardi Systems.

CHP offers a variety of services, including the Homebuyer's Assistance Program (HAP) and the Housing For Employees Program (HELP). HAP offers discounts on closing costs, home inspections and escrow and lenders fees as well as credits from participating real estate brokers. HELP allows buyers who have only five percent of the downpayment to borrow the remainder from participating lenders, including Santa Barbara Bank & Trust, Chase Home Finance and Montecito Bank & Trust.

While the anxiety of buying a home can rival that of multiple root canals, you can ease the discomfort by taking some preliminary steps before visiting open houses or selecting interior decorators.

Make sure to get a copy of your credit report and pre-approval for a loan before signing a contract.

The first thing to do is get copies of your credit reports from Experian, Equifax and Trans Union, the three major credit reporting agencies, to make sure they don't contain any inaccuracies. Misinformation could compromise your creditworthiness or interfere with your ability to secure a loan. Your credit report could contain information that appears erroneously because of a transposition of digits in a social security number or similarities between your name and someone else's.

You have to know what lenders will see when they peruse your credit history and be ready to explain any late payments or negative notations.

To order copies of your credit reports online, visit www.equifax.com, www.experian.com and www.transunion.com. To order them by telephone, call Equifax at (800) 685-1111, Experian at (888) 397-3742 or Trans Union at (800) 888-4213.

After reviewing your credit report and making any necessary corrections, go to a lender and get pre-approved for a loan before you start house hunting. Don't wait until you've found the home of your dreams and signed a contract before finding out you can't qualify for the required loan amount. Getting your financing in order early eliminates the worries associated with doing it later on and, more importantly, lets you know your exact price range so you don't waste time looking at property you can't afford.

In addition to avoiding hassles, pre-approval puts you in a better negotiating position if you get into a bidding war with other potential buyers. A seller might accept your offer over all others simply because you bring a loan to the table. The seller doesn't have to worry about funding problems sneaking up because everything has already been arranged.

Keep in mind that you want to get pre-approved for a loan rather than simply pre-qualified. Pre-approved buyers have actually completed the application process, submitted tax returns or other proof of income and had their credit history reviewed. A pre-approved buyer has written approval from a lender for a specified loan amount. Pre-qualification simply gives the buyer an indication of how much she will likely be able to borrow. It carries no commitment from the lender.

In determining the loan amount for which you qualify, lenders will look at your gross income, figuring that against the principal and interest of the loan, property taxes, homeowners insurance, homeowners association dues and monthly minimum payments tied to credit cards and installment or auto loans. However, you might benefit from making the determination based on your net income because, in reality, that's the amount you really have to work with.

20 years ago, typical homebuyers were young married couples. Today, over 53 percent of homebuyers are women.

With that in mind, be careful not to over-buy, particularly when you make your first home purchase. The big, beautiful house you fall in love with will look cold and cavernous if you don't have much furniture to put in it. What's more, struggling every month to come up with the mortgage payment will make your new home feel more like a financial albatross around your neck than an investment.

Stretching your housing dollars to cover a big mortgage means you have less to spend on furnishings and accessories that make your house a home and you also have less available for the maintenance and repair costs that inevitably arise. This can be significant, particularly if you're thinking about buying an older home or a fixer-upper. In that case, be sure to budget extra money for repairs.

When buying an older home, spring for a complete home inspection before you submit an offer so you know what problems you might be buying. You want to know if the roof, chimney, electrical systems, foundations, windows or doors are likely to create a financial nightmare.

Similarly, when you go house hunting, pay attention not just to your immediate needs, but also to the resale value of properties you consider. A two-bedroom, two-bath cottage with a large kitchen and huge great room might suit you perfectly in the short term, but it might be a difficult property to sell at a later time. You could be better off in the long run if you opt for a place that has an extra bedroom, even if you don't have to use it right away.

When you qualify for a loan, remember that in addition to the cost of the property itself you'll also be responsible for closing costs, which can range from two to seven percent of the overall purchase price. Closing costs typically include title insurance, taxes, pre-paid homeowners insurance, points on the loan and other lender fees. These are due at the close of escrow.

When you know how much you can afford to borrow and have chosen the property you want to buy, look for the best rates and terms you can find. Identify a lender with whom you can develop a comfortable working relationship. Just as you'd shop for the perfect little black dress or the right pair of strappy sandals, find the home loan and lender that fit you to a tee.

Teri Gauthier is Vice President, Residential Lending Team Leader at Santa Barbara Bank & Trust. You may contact her or her colleagues at 805.564.6350.