Buying of homes require certain things to be done prior to the purchase. In buying a house there are some simple steps that are followed through which are improving one’s credit score, figuring out what you can afford, saving for down payment or closing costs, building a healthy savings account, getting pre-approved for a mortgage and finally buying the house you like. By having good credit scores not only do you get the best rates in the market but also get the deals in down payment. A bank rate calculator is used to figure out how much an individual can afford in terms of purchasing a house. Apart from using a bank rate calculator to calculate what one can afford the housing expenses are also included and they are insurance, utilities and taxes.
By saving between three percent and twenty percent of the house price for a down payment then individuals are able to save for down payment. Credit history and loan terms determines the amount of down payment an individual needs to come up with. As an individual if the down payment is hard to come up with then one can look for down payment assistance, first time home buyers and home buyers assistance. The down payment assistance is usually based on location or for particular buyers such as first time buyers. In the buyers’ market one can negotiate to having the seller pay a portion of the closing cost. By building a healthy savings account then the lender is assured that you are not living pay check to pay check.
The money saved helps in paying for maintenance and repair of the home while at the same time individuals are given more latitude on criteria if the backers and the lenders see that one has a cash cushion. Some repairs like new roof fixes or water heater fixes are huge repairs which come up suddenly and drain your budget while on the other hand most repairs are sporadic. So as to build a healthy savings then one needs to assume that they’ll spend 2.5 to 3 percent of the home’s value each year on upkeep and repairs.
Getting pre-approved for a mortgage is the fifth simple step that follows building a healthy saving account which means that before shopping for a house one needs to get their finances in order. By having a mortgage pre-approval an individual is able to know how much they can afford before they walk through the first house. In addition use of the bank rate calculator aids in determining how much one can afford to buy. Buying the house you like is the last step in which short term home ownership is quite expensive as its dependent by how much one puts down and what it costs to sell the old hose and move.