We frequently refer to owning a home, of one’s own, as the American dream! But while a lot of people contemplate doing this, far too few, proceed in a well – prepared, ready manner, in order to have the ability to buy a home, they can, both afford, and meets their priorities. Doesn’t it make sense, to proceed, at the best possible fashion, to take the right steps, to make the procedure simpler, and less stressful.
1. Check credit reports: Several months earlier (suggest approximately 6 weeks), obtain a copy of your credit file, from all the major credit reporting agencies, and examine it, thoroughly, for precision, etc.. Furthermore, examine, how you might increase your credit score, either by paying – down debt, etc.. A lot of people can do this themselves, but, if you do not feel you are able to consult a professional, for advice and assistance.
2. Avoid additional new debt: We are often tempted, to accept new credit offers, which we are offered, at shops, through the mail, online, etc.. While you could save a few dollars, originally, obtaining new debt, or, even, giving your consent, for these entities to review and obtain your credit information, will have the effect, of lowering your credit rating!
3. Accumulate down – payment: The greater the down – payment, the easier it often is, to obtain financing to buy a house! Bear in mind, a larger down – payment, translates to, lower monthly payments, as well as a better, asset to ratio, loan. The greater this ratio, the lower the mortgage interest rate!
4. Accumulate reserves: Ideally, homeowner should put aside, a reserve fund, equal to at least, 6 to 9 months, of recurring monthly expenses. Moreover, another reserve, should be gathered, for repairs and renovations!
5. Examine/ consider your personal comfort zone: What is your personal comfort zone, in terms of how much, recurring monthly expenses, to carry? This number could be less than, equal to, or greater than, the total amount of mortgage you qualify for, so every effort, should be, to find the maximum, bang – for – the – dollar, and live somewhat, within your means, and comfort zone.
Potential home buyers gain, when they prepare, as completely as possible, before taking a look at houses. A prepared, educated consumer, has the most stress – free process!