3 Things to Do Before Buying a House
June 14, 2013
Do you feel that you’re ready to buy a house? Many people take the plunge, but unfortunately, a large percentage are not ready for what lies ahead. Buying a house is a major deal. On one hand, this is an excellent way to grow your net worth. But on the other hand, homeownership can take a large part of your income.
You may be excited to close on a mortgage loan, get the keys to your new house and hire a Milwaukee mover. But don’t move too fast. Here are three things to do before buying a house.
1. Eliminate as much of your debt as possible. The less you owe creditors and other lenders, the better. Freeing up cash makes it easier to pay your home loan. This reduces payment shock and lowers the risk of mortgage problems.
2. Build a healthy savings account. Repairs and maintenance are inevitable when you own your own house. You’ll eventually need to replace the roof, the water heater and perhaps the HVAC unit. Prepare for these expenses in advance and begin building a savings account. Save 10% of your income each pay period and you’ll be better prepared for an emergency.
3. Improve your credit. Your credit score may be high enough to qualify for a mortgage loan. But if you want the lowest interest rate possible, build the best credit score you can. Paying off your debts can accomplish this, as well as paying your bills on time.
(Photo attributed to Flickr member @401(K)2013 via the Creative Commons license.)
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