You may think that you are ready to be homeowner just because you want to own a home, and you believe you have the capital to do so. Not so fast, getting to the point of owning a home requires you to do a fair amount of homework. Here are a few things that you should do prior to starting the process of looking at homes.
First, you need to make sure that your credit score is in a good place so that you can secure a good mortgage rate. Credit scores that are below 660 to 680 will receive higher mortgage payment offers. Much of this has to do with the market and currently a score in the 700, preferably 720 and above, will get a good deal in today's market.
Make sure that you are buying a home that still keeps you in a comfortable place financially speaking. The rule of thumb is that you don’t want your home payments to exceed more than a third of your gross monthly income. Figure out what the number is that will keep you financially comfortable and make sure to shop in that range.
Remember that that you need to have to be able to give a down payment on any home that you intend on purchasing. The down payment amount is usually a certain percentage of the overall agreed sale amount. The percentage varies depending on the market that you are in but could be anywhere from 10% to 20%.
Daniel David Brauer now lives in New Jersey and is hoping to be a homeowner again someday.
First, you need to make sure that your credit score is in a good place so that you can secure a good mortgage rate. Credit scores that are below 660 to 680 will receive higher mortgage payment offers. Much of this has to do with the market and currently a score in the 700, preferably 720 and above, will get a good deal in today's market.
Make sure that you are buying a home that still keeps you in a comfortable place financially speaking. The rule of thumb is that you don’t want your home payments to exceed more than a third of your gross monthly income. Figure out what the number is that will keep you financially comfortable and make sure to shop in that range.
Remember that that you need to have to be able to give a down payment on any home that you intend on purchasing. The down payment amount is usually a certain percentage of the overall agreed sale amount. The percentage varies depending on the market that you are in but could be anywhere from 10% to 20%.
Daniel David Brauer now lives in New Jersey and is hoping to be a homeowner again someday.