Buying a home is
the dream of countless renters -- and even though owning a home doesn't
guarantee financial security, it is oftentimes a good investment. As long as
you buy within your
budget, make payments
regularly, and take care of the house and the property, owning a home can be a
great way to increase your net worth while paying for the necessity of living
space. That is one important reason why homeownership is such an important
aspect of the “American dream”.
As much potential
as purchasing a home does offer, it can still be an intimidating process --
especially for people who are buying their first home. If you are unsure how to
go about buying a house, then this article can help you get through the initial
stages of the process up until you have an experienced realtor guiding you.
Step One: Research. Here’s the good news: if you are reading this
article, then you are already doing something right! If you are planning on
buying a home, then you should learn as much as you can about the home buying
process, your local real estate market, your local realtors, etc. Knowledge is
power, and the more you know about buying a home, the better!
Step two: Budget. Most financial experts recommend that your
mortgage payments should not exceed 28 percent of your monthly income. With
that in mind, check out this
mortgage payment calculator to estimate
the budget you can allot to buying
your new home.
Step three: Pre-qualification. Contact banks in your area to get
pre-qualified for a mortgage. This process is relatively straightforward -- the
banks will simply give you a rough idea of how much you can afford to take out
on a loan. If your credit is poor, this may not be enough to buy within the
budget you had allocated -- in which case you may wish to work on improving your credit score before beginning the home purchasing process.
If you can afford a home within your budget, however, then you are ready to
begin searching for a qualified realtor to begin the home purchasing process!
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