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Want to buy a home? Consider the following before taking the big plunge!
1. Are You Ready to buy a home?
You need to get your financial house in order. The first
thing to determine is how much you can afford with the
added expenses you may incur after purchasing a new home.
List your current monthly budget and the anticipated monthly
budget you will have once you move into your home. Compare
the totals and determine how much more a month you will
need to live in your new home. Try living "as if you own"
for 6 months, once you determine if you can live the new
lifestyle, then you are ready to buy!
2. How Does Your Credit look and what is a FICO score?
A FICO score is a credit score developed by Fair Isaac
& Co. Credit that gives everyone with any kind a credit
a scoring method that determines if a credit user is
more trustworthy in repaying their bills. It takes
into account timely payments, current balances on credit
cards, length of credit history, residence and other
factors to see if you are a high or low risk.
There are numerous resources available online that allow
you to run your credit report from the three major credit
reporting companies. Equifax, TransUnion and Experian.
Credit scores will help a lender determine what types of
loans you will qualify for and the rate of interest you
will be charged. Run a report and see how you rate!
3. Do I need a down payment?
You have stories about 100% financing and "no down
payment" loans. These sound great in theory, but the
truth is you will pay much more in interest and for the
total amount of the house. Obviously, the larger the
down payment, the less your monthly payments and interest
will be. Saving for a down payment could be as easy as
anticipating how much extra you will pay to live in your
new home, put it in savings and let it grow. When you move
into your new home, you will be in the habit of making the
larger payments and know that you can live sufficiently
within those limits.
4. What type of house should you buy?
Knowing your situational needs for space and the
features that appeal to the entire family, should help you
make a list of your priorities. Decided how many rooms you
need, your favorite architectural style, distance to
schools, shopping, hospitals, recreation and other
important locations to suit your family’s lifestyle.
Prioritize your list into minimum requirements and luxury
"wish I had...". Have this list with you when visiting
a real estate agent or just looking on your own. It will
help you keep a focus on what is important and necessary
in your new abode.
5. Be prepared for the hunt.
After you know where you stand and know what you then
boils down to finding that dream home in the perfect
location. Patience is a virtue and this is the time
to exercise that trait. It can be frustrating to find
that the house you want exceeds your budget, or is
located in an undesirable neighborhood. Be prepared to
look, ask questions and go the extra mile, but always
make sure your needs list is met.
Learning details about the buying process will help
make this step of home buying simple and will get you
into the home that fits your needs.
About The Author
Home Buyers Digest (http://www.HomeBuyersDigest.com) is
an online digest of information on buying a house, moving
tips and mortgage /finance suggestions. Helping the home
buying community make common sense decisions.
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