It doesn’t matter if you don’t know the first thing about buying a home. A huge part of life is all about sticking to your guns. That means staying instead of running at the first sign of trouble. That’s basically how the buying process goes. There might be hurdles along the way but if you stick to your guns, you’ll get to the finish line sooner or later.
To help you navigate the real estate market better, here are a few tips from CNN Money on how to buy your very first home:
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Start with your finances: Do you have a good credit standing? When you ask for financing, some lenders take your credit standing and history in consideration. So if you’ve got a dismal record of debts and late payments, or a low credit standing, these things might make them decide to reject your application for a loan. You can stop this by doing what you can to build a better credit history. If you’re not a policy risk, you have no reason not to get approved.
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Create your budget: How much can you afford to spend? By now, you should already know how much your lender can cover. Calculate your monthly expenses, take it out of your income and see how much is left. Is that going to be enough? Your home payments shouldn’t go beyond 36 percent of your gross monthly income. What about your home owners insurance premiums, your car premiums and everything else in between? Is your budget feasible or do you need to go lower? And what about your down payment? Have you saved enough? Don’t go for the minimum. Always find a way to pay for the maximum amount in terms of down payment and monthly mortgage costs. The sooner you finish paying for your mortgage, the sooner you stop wasting money on those interest rates.
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Hire an agent: An agent can help you a lot: from finding the best Houston properties to making sure you understand every word of the contract, an agent is there to look after your best interests during the buying process. Help yourself make the best buying decisions ever by hiring an expert to help you out.
At any point of the buying process, you’ll need to pay close attention to your finances and budget. Having an expert to guide you every step of the way won’t hurt either. So go ahead and good luck shopping for your new home!
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