Are you Ready to Buy a Home?
The idea of buying a new home can seem very nice, but deciding if you are really ready can be a little stressful.
How do you know if you are ready?
First, you need to be familiar with the market in your area. You have a realistic idea of what a house will cost you. If you have no idea, you might want to spend some time flipping threw the classifieds and looking at a few real estate pamplets. Spend the time to become familiar with what houses are going for in your area.
You will need to have saved up enough money for a down payment and closing costs. The down payment is often determined by the type of mortgage you choose. Traditionally, the down payment is 20% of the purchase price. But there are many options available today for borrowers. Most lenders recognize that it is difficult to save up enough for a down payment of that level. You can find down payments as low as 3%. But you need to put as much as possible in order to start out with some equity in the home. The more you put down, the lower your interest rate will be.
You will also need to have enough money to pay for closing costs. These include points, taxes, title insurance, financing fees and other items that must be escrowed. The closing costs will range between two and seven percent of the property's purchase price. Borrowers should receive an estimate from the lender when applying for a mortgage in the form of a good faith estimate.
Your down payment savings and your monthly income will help you determine how much you can afford. Most people say that the mortgage payment should be less than 25% of your gross monthly income. I say that the only way you can establish how much you can truly afford is to look at your budget. If you are struggling to pay a rent of $1,000, it would be foolish to take on a mortgage of $1,200.
You need to remember that you are purchasing a home and all the things that come with it. You will find that there are many expenses in owning a home. They include maintenance costs, utilities, homeowners' insurance, roofing, repairs and other responsibilites.
Your credit must be in good shape if you want to get the best rates possible. Take the time to check your credit report to make sure it is accurate. If it isn't, you need to correct it before you apply for a loan. Taking the time now can save you a lot of money in interest over the years of your mortgage.
If you are ready, you will know it. There are many advantages to owning your own home.
Related Tags: rateempire.com, home purchase
Martin Lukac http://www.MartinLukac.com , represents http://www.RateEmpire.com , an Internet consumer banking marketplace. RateEmpire.com is a destination site of personal finance, investing, taxes and mortgage rates. RateEmpire.com provides mortgage guides and financial rates and information. RateEmpire.com also operates a financial portal #1 American Financial, found at http://www.1AmericanFinancial.com
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- 5 Reasons to Buy Jasper Real Estate
Jasper is a small town in North Georgia and it is growing rapidly. Since North Georgia Foreclosures - Ellijay Real Estate
Ellijay Georgia has always been known for it's outdoor activities and seasonal festivals. Downtown E - How to Deal With Blocked Drains
A blocked drain is an occurrence that happens eventually to all households. You may have experienced - The Benefits of Hiring a Plumbing Consultant
Your dream home may not always be brand new, with fresh paint and home essentials. There are certain - The Worst Mistake You Can Make When You Apply to Rent a Home
A whole new class of people has become renters and potential renters in America during the last thre - State of Individual Real Estate Markets
Everybody is well aware of the hit that the real estate market has taken over the past three years. - Thoughts on Avoiding the Landlord Trap
I've heard several people say they would never invest in a multifamily rental property because they - An Idea to Increase the Bottom Line of Your Investment Property
Are you pretty sure that you've already maximized the income coming from your property? If you've cl - Finding the Value of a Piece of Investment Real Estate
There is a lot of confusion about how much investment property is really worth. We'll look at three - Arkansas Land For Sale - Search Engine Optimization and Your Website
If you have Arkansas land for sale and are interested in advertising it on your website I have a few
Most viewed articles in this category:
- How High Did Home Prices Really Go
The U.S. Census Bureau released data on Tuesday that revealed where the nation's hottest markets wer - New Homeowners Tips for Household Safety
With so many items on their ¡°buying a home¡± checklist, few homeowners take into considerati - Truth About VA Foreclosures
Many people now days are finding themselves out of work and not being able to make the mortgage paym - Avoid Rookie Real Estate Investing Mistakes
When Robert Kiyosaki, author of the Rich Dad book series, bought his first property he was, of cours - Finding The Perfect Roommate On Craigslist
Craigslist, Roommates, and The Concerns Craigslist is "great" when it comes to looking for housing - The Forgotten Secret To Selling Property - Simple, Quick And Cheap
Why spend big dollars trying to get people to drive a long way to see your house, when your best pro - Get Amazing Results Selling Real Estate Online
This is the age of the internet. Why not take advantage of the widespread use of the internet to ad - Dallas Real Estate Information
In the United States, Dallas is considered as the second leading state according to the area. If any - The Largest Private Equity Indian Real Estate Deal
In the largest private equity deal won by the real estate sector, Morgan Stanley Real Estate has inv - Fractional Real Estate Ownership
Fractional ownership of vacation ski condos is growing in popularity. Park City Utah a popular ski t