If you believe that the new year will be the year for a day rent in your rearview mirror and go to your House, it’s time to start preparing.
So if you would be willing to buy for another six months or even a year, here are 10 clear steps to take now. You will cross these items off your list makes it easier for you to find and finance your dream house.
Check your credit
Go to annual credit report.com and request free credit reports from all three credit reporting bureaus: Equifax, transonion waxbrian. For a small fee, you can also obtain your credit score.
First, check the reports closely for any errors that need correction and any negative information.
And these reports should indicate also what you can do to improve your credit. Highest credit score makes it easier to qualify for lower interest rates, which in turn make purchase more affordable.
One trick is to save the difference between rent and what you estimate your mortgage payment will be, or more. You’ll need cash reserves to buy a home, you will need to prove to the lender that you can payments which may be higher than what you are currently paying in rent.
Earn extra cash
If you are low on cash, as most first-time buyers are, and consider taking radical steps to cut spending. Or try some ways to increase your income, such as selling some of your stuff or taking a part-time job.
Start looking at neighborhoods
Unless you already know where you want to live, take the time to visit a variety of rehabilitation potential. You’ll want to scout out the ‘ hoods that meets your needs in terms of transport and other facilities. You will explore various sites help you narrowing your priorities.
Consult your lender
Whenever you visit the lender, the faster you’ll know what you can afford and the steps you need to take to improve your credit or generate more income.
Investigation of down payment assistance programs
Visit payment resources to learn more about programs in your area that can help you find a batch of money or low-interest loans.
Attend a seminar or taking classes at home
Lenders agents often provide free seminars that explain the process of buying a home.
As many government agencies, non-profit organizations, local groups that can help you prepare for the financial responsibility of owning a home.
Decide how much you want to spend
The lender can give you an idea of how much you can borrow, but you have to create a personal budget to decide how much you will be comfortable spending to pay your mortgage.
Visit open houses
Try to avoid walking through houses you simply can’t afford it, you don’t want to fall in love with something, and then be dissatisfied with other options.
Go to open houses in early in your search and will let you know what is available in your area that may fit your budget. You can then begin to see what matters most in your decision: location and entertainment room or outdoor space.