Finding the right home for you and your family is a rare experience, and because it is, you should make it as enjoyable as possible. However, you must remember you are probably also making the largest expenditure of your life, and careful considerations should be made.
1) You should first contact a lender to determine what size of home will comfortably fit your budget and lifestyle. This will enable you to narrow down your search to a specific price range. Continue reading
Step – 1 Make the Decision to Buy. It seems obvious, but it’s good to note that the first step to buying a house is making the decision to buy. Consider the reasons you want a new house and write them down. Determine how long you want to live in the new house – does buying still make good financial sense? Can you afford a house that will meet your list of requirements? A good rule of thumb is your mortgage payment should not exceed 1/3 of your net monthly income. Continue reading
1. No Major Purchase of Any Kind
Review the article titled, “Don’t Buy a Car,” and apply it to any major purchase that would create debt of any kind. This includes furniture, appliances, electronic equipment, jewelry, vacations, expensive weddings……and automobiles, of course.
2. Don’t Move Money Around
When a lender reviews your loan package for approval, one of the things they are concerned about is the source of funds for your down payment and closing costs. Most likely, you will be asked to provide statements for the last two or three months on any of your liquid assets. This includes checking accounts, savings accounts, money market funds, certificates of deposit, stock statements, mutual funds, and even your company retirement accounts. Continue reading