6 Things You Need to Know Before You Buy a House: Save Money and Get the Home You Want
Are you looking to buy a house? Make sure you know these 6 things before you start your search. You'll save money and have a better chance of getting the home you want.
Strengthen Your Credit
The higher your credit score, the less you pay each month for a mortgage. Get your score today and look for ways to make it better.
Figure Out What You Can Afford
You should never pay more than 30 percent of your monthly income towards housing expenses. Figure out how much you can afford to pay each month based off this 30% rule.
Save for a Down Payment and Closing Costs
You'll need anywhere from 3 to 20% of a home's total price upfront. Start saving at least a year before you buy a home.
Having three to five months worth of mortgage payments saved up makes you much more likely to get a loan. Also, homes cost money to maintain. Saving is something you should be doing anyway.
Get Preapproved for a Loan
Getting preapproved for a mortgage makes shopping for a home much easier. You'll know exactly how much you can afford and buyers will take you more seriously.
Buy a House You Like
Don't count on quickly selling it if you decide you don't like it or you need to move. Make sure it's something you'll like for at least the next few years.