Monday, September 14, 2009
The Essential Rules to Buying a new House
Buying a new home for many bachelors or couples is a major step and decision in the time line of your life. It comes with major responsibility and added pressures to succeed and strive in your career and take the next step toward having a family. When passing up on rent payments for fixed monthly mortgage payments there are many rules to abide by in order to make a smooth transition and not end up in a dicey situation down the road. In this article I will talk about some rules that research suggests to live a happy life in your brand new home.
The first step to owning a home it to get a pre-qualification letter. One, by having this letter in hand, it shows the realtor or home seller you are serious about making a bid and second, it shows the amount of a mortgage you qualify for before beginning your search. This will narrow down your search and make sure you are financially stable to pay your mortgage payments.
Know Your Score. Before you even think about looking at homes, make sure your credit report is spanking clean and your FICO score is as high as possible. Remember, the higher your score, the lower the interest rate you will be offered on the loan
The Eight Hour Rule. Always make sure your income relates to being able to make that monthly mortgage payment. Make sure you do your due diligence on owning a home and the house itself. But, when all else fails, however, you can always fall back on the eight-hour test. Whatever the size of your mortgage, you have to be able to sleep soundly at night. So if an impending loan has you stretching for the Ambien, it’s a pretty good sign that the loan is a bit of a stretch as well.
By Eric Gursky