Home Buying Financial Prerequisites

There are several financial prerequisites that you should be aware of prior to beginning the home buying process. Here are some of the most important ones that you should remember.

Down Payment

If you want to show the banks and the lenders that you’re serious about buying a home, then you’ll need to start saving up for a down payment generic viagra usa. To be on the safe side, save up at least 20% of the total cost of the home. Because banks and lenders are becoming increasingly stricter when it comes to approving mortgages, you’re going to have to ensure that you have a sufficient amount of funds available to put down.

Credit Score

Simply put, the higher credit score that you have, the lower the interest rate you are going to see on your mortgage. Having a solid credit score is important because it shows the bank that you can pay your monthly bills on time and consistently.

Keep Your Debt-To-Income Ratio Equal or Lower than 43%

The banks don’t take too kindly when it comes to your debt. If you debt-to-income ratio is above 43%, expect there to be complications when you apply for the mortgage that you want. Keep yourself as far away from debt as possible. Ask yourself while shopping if you really need that item or just want it to appease the inner “shop-a-holic” in you.

The Bottom Line

When it comes to buying your house, one of the most important things that you should remember is that you need to keep your finances in order. Be sure that you have enough funds in your account to afford the monthly mortgage payments as well as a good amount to live comfortably. You shouldn’t be living paycheck-to-paycheck so instead of burying yourself in a financial hole, consider if a home is right for you.

Bio: Kuba Jewgieniew is the head of Realty ONE Group, a one of the fastest growing companies in America, as rated by INC. 500.