Friday 14 February 2014

First Time Homebuyer Readiness Checklist

Are you ready to buy your first house? You should know the process involved in buying residential real estate can be quite complex and tasking. Seemingly easy decisions could, in fact, make or break your purchase. Before taking the plunge, you should first evaluate your readiness for the long road of home purchase.


Budget

Before buying a house, it’s important to first get your finances to a point where you can already give a decent amount as down payment without compromising your other allotments. Moreover, your budget should also be substantial enough to allow you to pay your monthly mortgage fees.

Income

One of the most efficient ways to ensure continued monthly payments is to check your income level. Most lenders will look into your source of income to make sure you have a reliable one capable of supplying your long-term commitment to your loan.

Credit

Of course, you should also get your credit score in shape. It doesn’t have to be perfect, but it should be high enough (around 720 or higher) for your lender to give you a low interest rate. Your credit score speaks volumes about your ability to pay debts.

Ultimately, your real estate purchase is only as good as how well you gear up before jumping into it. “Look before you leap,” as the saying goes.

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