Money Money Money – How much is the house you are looking at buying?
Article by Rebecca Beckett
We are all tightening our belts, in small ways and big ways. However, due to the government’s homebuyer’s credit, many people are still rushing out into the real estate market to find their dream home. People must consider the amount of money they are spending, the long term affects and their current financial situation. Currently, it is very difficult for start up companies to obtain small business loans Likewise, it might be more difficult for a consumer to open a new line of credit at a bank. Think of how much more difficult it will be to get a home loan, get approved for buying a home or selling a home.
So you believe that buying a home right now is the right choice for you. Make sure that you start saving money. You are going to need it. You will need money to put down a nice down payment. Plus, you’ll need to be able to cover the closing costs. Then, once you are in the home you will want to have some extra money available to cover any costs that come up unexpectedly.
Second, you need to maintain a high credit score. Not just a good credit score but a high one. In fact, the higher the better. You will get the best interest rate if your credit score is high. Homeowners are always shopping for the best rates so that they can have the smallest mortgage payment possible. Every homebuyer wants to get the best deal possible. If you have bad credit you will want to start raising the score. Learn how to do this by talking with a credit specialist or by searching online for the best ways to raise your score. It will be very difficult to get a loan at all without a decent credit score.
Finally, take some time to start reducing your debt. Get rid of those high interest credit card accounts first and foremost. You want to make sure that you are establishing a good debt to income ratio so that you can qualify for a good mortgage. Plus, if you lose less of your available credit you are going to improve your credit score.
Before the downturn of the real estate market, a lot of people made a lot of bad decisions regarding the amount of money they were spending on houses. Clearly with the amount of foreclosures on the market today, people were not thinking about their financial situations. It is difficult to manage money and to make sound financial decisions, especially when there are so many enticements and good deals out there. Just make sure that if you are going to buy a house and take advantage of those good deal and enticements that you will need to be able to afford the house for many years to come. It is not a one time deal. Taxes go up, utilities will change and you need to make that you can roll with the changes. Take a minute to assess your financial situation so you can make the choices right for you.
About the Author
About the Author: Rebecca Beckett is a freelance writer for Innuity If you would like more information about small business loans, or line of credit go to Innuity Fundng