| You have finally made it. You are ready to purchase | | | | mortgage payments (as well as taxes and insurance |
| your first home. You did all the math and are ready to | | | | on your home or condo) should not exceed 25% of |
| own a condo or perhaps a house. Heres some good | | | | your total gross income. Next, you must figure out how |
| ideas to start with before entering your first home | | | | much of a down payment you can put down. You |
| purchase. | | | | must make sure that you don't leave yourself broke |
| First Things First: Pay off any debt you can. It's an | | | | putting every penny you have in the down payment. |
| easy thing to forget when your trying to save as | | | | Expenses will arise and you are responsible to fix |
| much cash as you can for a down payment. You will | | | | them as the home or condo owner. There is no more |
| be inclined to use credit for more things in an effort to | | | | landlord to call. |
| save cash. A better way to go about would actually | | | | The different types of mortgage loans available. |
| be paying off some debt, and having as few debts as | | | | Now you must decide which home loan is right for you. |
| possible when applying for a home mortgage. Even if | | | | For the most part, a typical buyer with steady income |
| that may mean that your down payment is a little | | | | and good credit can put as little as 3%-5% total down |
| smaller, it may help in the long run. Due to the fact that | | | | payment. These loans have become more and more |
| most credit card debt is costly, therefore limiting your | | | | accepted in the industry as banks typically are able to |
| ability to save. Credit cards nationwide hold an | | | | cover the cost of home loans valued at under |
| average APR of around 13% or more than twice the | | | | $370,000. On an average loan with a house costing |
| amount of a standard rate home mortgage. Second, | | | | around $180,000 putting 3%-5% down would result in a |
| the more credit card debt you have the less you can | | | | higher monthly mortgage of about $58 per month. |
| borrow. Mortgage lenders are very reluctant to allow | | | | The more money you can put down on your new |
| someones living expenses (credit card payments, any | | | | home or condo mortgage, the more loan options, |
| loans, insurance, mortgage, and taxes) to exceed 40% | | | | almost always with better rates, are available to you. |
| of their gross income. | | | | The more money you put down, the more secure the |
| How much are you really able to afford? | | | | lender feels in signing off on your mortgage loan, it |
| The answer to that question is focused on 2 main | | | | basically means you have more to lose should you |
| components. How much of a down payment you | | | | lose your house or condo. |
| have, and haw much you are able to borrow. Typically, | | | | |