Being able to buy your own home has always been a part of the "dream". Many of us never reach that pinnacle as we are happy in renting and having another take care of the maintenance and upkeep of a family home. However, it is possible for low~income families to manage this dream and one day even own a beautiful house like the Santa Monica homes. If you dream it, it will happen, or so the adage goes.
First thing to put in order is your credit. Everyone needs a credit line in order to do any purchases of this kind of scale, rarely is a home purchased without any financial and legal advisors being involved with the process. Get a copy of your credit report and see just what kind of debt you have consumed. If you do happen to have credit worries, begin by putting your financial affairs in order. Pay off any outstanding charges and begin to pay our bills on time. If you stay on top of these issues, in no time, your credit will begin to take a positive note, giving you a better advantage at purchasing your first home.
Develop a financial plan and list all of your incomes, debts and assets. You need to show that you are able to cover all of your current bills with enough to pay your mortgage and extras. Banks do not wish for your mortgage to be more than 25~30% of your income.
Begin to save money for a down payment. Usually 5% of the cost of the home is asked as a retainer. This shows the bank that you know how to save and are committed to the task of being a homeowner. If you are able to show that you are trustworthy, a bank is more than likely able to deal, positively, with you and your house's mortgage.
Ask the bank for pre~approved loan before looking for your first home. If you happen to qualify, this will makes things simpler in finding your first home, as the bank will give you a price range in which you are pre~approved to buy. Even if you do not get approved, it will give you a good lesson to help you better understand what your bank is looking for in financial information.
Check out any first~time home owner programs that may be available in your area. Housing, Urban Development or similar offices will better be able to answer your questions on requirements you need to meet in order to benefit from these programs.
Look for a house you can afford. Consider what you make during the month and what you can comfortably afford to purchase. As a rule of thumb, you shouldn't buy a house that is three times more than your annual salary.
Buying a house can be a daunting task for first time homeowners, but if you approach it educated and informed, your stress can be greatly reduced. Know your market, find a reputable real estate agent and have fun shopping for your dream home. Today's fixer upper could mean tomorrows Beverly Hills homes...
** This is a sponsored post for The Partners Trust, however, all the points and views are my own~!! **