While owning your own home is often seen as a major part of the so-called American Dream, wouldn't it make sense to plan effectively so that it doesn't turn into a nightmare? After more than fifteen years as a licensed real estate seller in New York State I created what I often call the RICH IDEAS to proceed, wisely, when buying a house. With that in mind, this article will attempt, briefly, to examine, review, revise and discuss a 5 step plan, to be properly, effectively, judiciously prepared for this process and proceed accordingly.
1. Gather / accumulate sufficient funds, for a variety of requirements and necessities: It also makes sense to proceed – prepared, as much as possible, from the start. Well – before you start looking for a house, saving money, systematically. Remember that you will not only need funds for the down payment (often, but not always, 20%), but also funds for other closing costs including but not limited to limit yourself to it, prepaid property taxes, utilities. , and others, so-called escrow items. In addition, most lending institutions require demonstration and proof of funds, equal to several months, of mortgage payments.
2. Get a copy of your credit report (if husband and wife get both): You have the right, once a year, to request a free copy of your credit report from any of the major credit agencies / companies. Read this document carefully and correct any errors. If your score isn't as high as a lending institution might want, start taking steps to raise and improve it, ASAP!
3. Pay off other debts: Credit institutions use formulas, to determine its qualification, to receive funds. These generally focus on the percentage of debt to income. Therefore, pay off your other debts before you start the process!
4. Do not add any other debt: Avoid acquiring more debt, whatever convenience and / or attractiveness it may seem, for now. Don't fall into the trap of accepting new accounts with store fees as it could jeopardize your creditworthiness when looking for a mortgage!
5. Buy houses, according to your means: Avoid the trap of getting rich in a house and looking to buy a house, beyond your comfortable means! Know how much you can comfortably and safely afford, so you choose, wisely, and stay, comforted!
Since, for most of us, our home's value is our single most important asset, doesn't it make sense to proceed, with caution and wisdom? Will you be up to this task?