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