Preparing yourself for Homeownership
Homeownership comes with a long list of benefits and rewards, however also carries a healthy dose of responsibility. Financial hardships can develop from misjudging your financial obligations or exceeding
your financial limitations.
The foreclosures rates across the nations show evidence of those misjudged financial obligations and not buying within your means. According to RealtyTrac.com 1 in every 230 houses is in foreclosure. across the nation. Distressed home sales still account for around 1/3 of all home sales.
Being fully prepared for homeownerhip is prudent. Follow these expert tips to get you started to a cautions and well planned effort to homeownership.
1) Decide and figure out how much you and your family can truly afford. Be sure to take into account any scenario that can come into play. - Job loss, physical diablity, length of time you plan on living in the area.
2) Calculate the cost of owning a home. Unlike calling your landlord for repair things that break, you will be fully responsible for the repairs. Be real about the costs. You will need to consider closing costs, homeowners insurance, maintenance and repairs, and even decorating costs.
3) Take a good look at your credit score. Be sure that everything on your report is accurate and be cautious of identity theft.
4) Speak directly to a lender or bank to get pre-qualfied then pre-approved for a home loan.
Pre-qualified means that the lender is willing to write you a loan. Pre-approval gives you a more exacting budget and proves to a seller that you mean business. Getting your paperwork in order for this step involves digging out your W-2's, taxes, paystubs and other other financial documents.
5) Once you've established what your home buying budget is you should start saving. If you intent to put down a large downpayment you will need at least 20-25% of your home purchase saved up. Begin your savings journey by developing a monthly spending budget. Decide how much money you can transfer each month to a savings account and then watch the balance grow.
6) Finally, start HOME dreaming. Searching for the perfect home can be a tiring task. There are many different kinds of homes out there but you should find the one that's a right fit for you. What amenities are a must and what can you do without? Are you interested in specific neighborhoods or school districts?
Buying a home is the biggest purchase you may ever make and it can be your dream come true. Just make sure you do your homework and legwork to ensure its a solid financial decision that will benefit you and your family.
Source: Realtytimes.com
The foreclosures rates across the nations show evidence of those misjudged financial obligations and not buying within your means. According to RealtyTrac.com 1 in every 230 houses is in foreclosure. across the nation. Distressed home sales still account for around 1/3 of all home sales.
Being fully prepared for homeownerhip is prudent. Follow these expert tips to get you started to a cautions and well planned effort to homeownership.
1) Decide and figure out how much you and your family can truly afford. Be sure to take into account any scenario that can come into play. - Job loss, physical diablity, length of time you plan on living in the area.
2) Calculate the cost of owning a home. Unlike calling your landlord for repair things that break, you will be fully responsible for the repairs. Be real about the costs. You will need to consider closing costs, homeowners insurance, maintenance and repairs, and even decorating costs.
3) Take a good look at your credit score. Be sure that everything on your report is accurate and be cautious of identity theft.
4) Speak directly to a lender or bank to get pre-qualfied then pre-approved for a home loan.
Pre-qualified means that the lender is willing to write you a loan. Pre-approval gives you a more exacting budget and proves to a seller that you mean business. Getting your paperwork in order for this step involves digging out your W-2's, taxes, paystubs and other other financial documents.
5) Once you've established what your home buying budget is you should start saving. If you intent to put down a large downpayment you will need at least 20-25% of your home purchase saved up. Begin your savings journey by developing a monthly spending budget. Decide how much money you can transfer each month to a savings account and then watch the balance grow.
6) Finally, start HOME dreaming. Searching for the perfect home can be a tiring task. There are many different kinds of homes out there but you should find the one that's a right fit for you. What amenities are a must and what can you do without? Are you interested in specific neighborhoods or school districts?
Buying a home is the biggest purchase you may ever make and it can be your dream come true. Just make sure you do your homework and legwork to ensure its a solid financial decision that will benefit you and your family.
Source: Realtytimes.com
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