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8 Ways to Get Your Finances in Good Shape to Buy
- Plan a budget for your family. Don't just budget what you want to spend. Use acutal receipts and set a budget based on what you really spent for at least the prior 6 months. A big advantage to this method is that it takes into account emergency expenses - if your car breaks down if you get sick and so on plus you figure regular expenditures such as rent payments.
- Cut your debst. In most cases ,a lender looks for a total debt amount of less than 36% of income. this amount includes your house payment (mortgage) and often ranges between 25 % and 28% of your income,. you should get all installment debt such as auto loans, college loans, revolving balances on credit cards—down to about 8 % and 10 % of your income total.
- Get a grip on your expenses. You should know what you spend pay the landlord for rent, the gas, electric and other similar bills. but small expenses such as coffee at Starbucks add up. Write down every item you spend for 30 days.. You will be amazed at what you can save when you put your mind to it!
- Make More Money. You might need a 2nd, par -time job to raise your income to a higher levels so you can qualify to buy your dream home.
- Save, save, save! Although might get a loan with 5 % downpayment (this is much harder now!)—or maybe less sometimes—you can usually get a lower rate and a lower cost overall if you have a larger downpayment.. Aim for saving a 20 percent down payment.
- Create a Fund for your House! Don’t just save the left overs for down payment. Set a specific amount per month for savings. Pay it along with paying your regular monthly bills.
- Don't change jobs now! - If you aren't at your present job for 2 years you just might pay a higher rate for your mortgage.
- A Great credit history is golden! - Make all your credit card payments on time or a little early. Pay your other bills on time also. If you can pay the full balance - this looks good.
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