Grumpy Real Estate Agent ImageIf you’re desperate for information on how to buy a home, you may get sick of the candy-coated information at some point. For those answers that are a part of every transaction, here are the facts in very simple and short form.

Can You Afford it?

The bottom line is that you have to be able to afford the home-so what does that mean? Most of the time, finance officers don’t want you to spend more than a third of your monthly income on the house. However, if you really want to do it right, you should keep the house payment at 25% of your monthly income.

That will give you plenty of money to pay your bills and take care of emergency repairs that come up. It will help you stay on track and be able to pass any loan application verification in terms of your financial status.

Do You Pay Your Bills on Time?

If not, don’t buy a house. Home ownership can be the quickest way to a higher credit score, but it can also be your quickest downfall. Potential homebuyers who have a hard time paying bills on time and meeting deadlines should definitely get some new habits before they commit to a purchase like this.

These banks and credit unions regularly report directly to the credit agencies and they will not shy away from doing so. Make a deal with yourself that every single bill will be paid early or on time for a full year before you consider buying a new residence.

Are You Prepared to Do Some Work?

Nobody said buying a home was easy, and in fact, can be incredibly stressful if you’re unfamiliar with the process. Be prepared to gather several documents, verification of income, verification of assets and anything else the bank requests. This will take some time and you may have to make special phone calls for help.

While it does take time out of your day and give you additional pressure to worry about for a while, the payoff is more than worth it. Owning a home gives you a freedom and security that isn’t available through any other purchase.

Recognize Other Points of View

Once you’ve committed to the process, make yourself aware of what is required. This may not always come to you in the most polite manner and the people you talk to may come off as crass and busy.

However, this is because they deal with so many other clients like you on a regular basis. To them, it may not be as exciting and new as it feels for you. Be patient with them, patient with yourself and you will soon find yourself as the owner of a brand new real estate to share with your loved ones.

Tags: , ,

This is filed under Home Buying.

     Twitter It!