to buy a house
Before buying a house make sure that you are financially
secure. Buying a house is the biggest expensive single thing
a person will spend their money on during their life. Make
sure you can afford to buy your house by following our tips.
- Run a Credit
Report to make certain that there are no discrepancies
or problems in your credit history.
- Do an analysis of what your current financial situation
is, where the money comes from and where the money is
presently going. Develop a household budget for your current
situation. Get into the habit of using it on a consistent
basis. Keep your spending patterns in check.
- Do an analysis of how buying a house will affect your
Budgeting to Buy
If you want to buy a house, start by working out how much
you can afford to borrow. If you are in a lot of debt try
to pay these off first before you start your budget. (But
don`t get into any more debt in the mean time.) If you have
a lot of high-interest credit debt, try to move your balances
to cheaper cards and plan to spend a year paying off as
much of that debt as possible. The less debt you have the
easier it will be to get a mortgage.
- Identify your long-term financial goals.
Owning a house may be one, saving enough for retirement
may be another.
- Write down your monthly income, savings, and spending.
- Open a savings account to start saving for your house.
- Cut back on nonessential spending.
- If it is possible to do so without adversely affecting
your down-payment situation, pay off minor debts.
Before applying for a mortgage
Begin to gather items such as your last 3 years income tax
returns, current copies of pay stubs and records of any
supplemental income you may have.
If you are self employed, you will need all business records
and tax returns for the last 3 years. Having these items
close at hand will save an enormous amount of time when
you are asked for them. You will have to pay a minimum
of a 5% deposit. Make sure you have it before you consider
buying a home.