Money Makeover Tip: Buying Your Own Home
| (0 Comments) | Send to a Friend |
February 25, 2008 @ 12:00 am
•The first step is saving for a down payment and making sure your credit report/rating is high.
•Usually you will need 10% to 15% of the price of the house or apartment in cash in order to qualify for a mortgage.
• If you will be living in a certain area for less than two years, renting might be better. Wait until you know you will be located in one place for a more permanent time, preferably three years or more.
•Getting your credit report/rating high is a function of opening a few credit cards and paying the balance on the cards on time each month, opening a bank account and keeping a balance without overdrafts, opening accounts with power and lighting companies, cable companies, water companies and paying the monthly bills on time. Later on, you may want to take out a car loan or lease and pay the monthly bills on time. Slowly you begin to build credit and will have a credit report that shows you are responsible and credit worth when you want to apply for a mortgage.
• Today there are many home mortgages, different payback periods, fixed vs. variable interest rates, balloon payments, etc. Ask your mortgage broker, become educated and do your research before making the decision that is best for you and your financial goals.
