Since, for most of us, our house, represents, our single – biggest, financial asset, wouldn’t it make sense, to do, all we possibly might, to ensure, we do so wisely, and in a prepared, informed manner? Wise home buyers, proceed, in a cautious, well – prepared way, and balance their emotions, and logical components, in order, to best determine, what makes sense for them. While each individual, has, specific needs, requirements, and objectives, each should commit to wisely, proceeding, through the process. This should begin with effectively preparing, prior to even, beginning the house – hunting, search. With that in mind, this article will attempt to briefly consider, review, and discuss, 6 keys, to preparing to buy a house.
1. Reduce debt – Pay down, or off: Begin your planning, at least, 6 months, prior to beginning your search! Do everything possible, to pay – down, your overall debts, and attempt to eliminate, as much as possible. Since most use a mortgage, to pay for a house, it’s important, to enhance your credit, and overall debt, is a major consideration, for most lending institution!
2. Do not add, new debt: How many times, have you shopped, in a store, and been offered, a discount, if you open a store charge? This small, immediate savings, often, ends up, having longer – term, less – desirable ramifications, when it comes to applying for mortgages.
3. Put together funding: At least 6 months, in advance, begin putting together the necessary funding, you will need, for a down – payment, closing costs, and reserves. Smart home buyers realize, it is wise, to put together, the equivalent of at least, 6 – 9 months, reserves, in order to make the overall process, the least stressful, reduce hassle, and enhance your enjoyment, of owning a home, of your own.
4. Know, recognize, address, fix, and improve your credit: Begin by getting a copy of your Credit Report, from all 3 major Credit Reporting Agencies. Review each one, thoroughly, carefully, and completely, and address any areas, which might bring forth questions, and/ or obstacle, in terms of qualifying for your loan. If you feel, you can’t do so, yourself, it is wise, to hire a professional, recommended, experienced individual, to help you do so.
5. Know your comfort zone: It will take a considerable amount of your capital, to put down, as a down – payment, etc. Will you be comfortable, reducing your available cash, etc? How about the monthly payments, as well as necessary reserves, for repairs, renovations, and maintenance? Objectively, introspectively, examine and consider, your personal comfort zone! Don’t become house – poor, by putting too much, into this investment! Do what’s best for you!
6. Avoid the money – trap, or eliminating your comfort zone: Have your prospective home, professionally inspected, and recognize, what your present and future needs, might be, and whether, the particular house, will be a good – fit!
An educated, prepared, home buyer, becomes the happiest homeowner. Will you proceed wisely and patiently?