All across the United States, there are millions of people looking to a buy home
- either now or in the future. Over the last few years, lower interest rates
have come along, making it more affordable than ever to buy a home. When most
people stop and give it some thought - buying a home makes a lot more sense than
renting a home or an apartment.
In order to buy a house, you�ll need to start saving your money and have
sufficient funds for the closing costs and a down payment. Your down payment
will normally need to be around 15% of the price or the value of the property -
whichever is lower. To be on the safe side, you should always try to have 20% to
put down. If you aren�t able to put 20% down, you�ll need to buy some private
mortgage insurance, which will cost you more in terms of your monthly payment.
Generally, the closing costs will run up a bill around 5% of the property price.
Before you purchase the home, you should always get an estimate. An estimate
won�t be the exact price, although it will be really close. You should always
plan to save up a bit more money than you need, just to be on the safe side.
It�s always best to have more than enough than not enough.
You�ll know your all set buy a home when you know just how much you can afford,
and you�re willing to stick with your plan. When you buy a home and get your
monthly mortgage payment, it shouldn�t be any more than 25% of your total
monthly income. Although there are lenders out there who will say that you can
afford to pay more, you should never let them talk you into doing so - but stick
to your budget instead.
Consider that there is always more money added with a home other than the
mortgage payment. You also have to pay for utilities, homeowners insurance,
property taxes, and maintenance. Owning and caring for a home requires a lot of
responsibility. If you�ve never owned a home before, it can take a bit of time
to get used to.
Before you fill out any applications, you should always look over your credit
report and check for any boo-boos. Although you may think you don�t, you can
easily get an error on your credit report and not even realize it. If you have
an error on your credit report, it can cost you a lot of money in interest
rates. An error will decrease your credit score, which will put you in a higher
interest bracket and ultimately cost you a lot more money in the end. Therefore,
you should always know your credit before you approach a lender.
If you check your credit report early enough, you may leave yourself adequate
time to fix any problems and get your credit back on track. Rebuilding credit
can take time though, sometimes even years. You should always plan ahead - and
give yourself plenty of time to fix your credit.
Buying a home will necessitate a bit of dedication on your behalf. You should
always strive to get the best possible deals, which means knowing your credit
and where you stand. This way, you can get the best interest rates. You don�t
want to buy a home with bad credit, simply because you�ll pay a lot more money
for the home. If you take the time to fix any credit problems and save up some
money - you�ll be able to get a much better home for your money.
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