Four Important Considerations before Buying a Home

EVERY person would have dreams of having my own place beautiful and comfortable. However, buying dream home is a major investment that should not be done in a hurry.

Make sure you are in the right financial situation before taking this important leap. Here are some points to consider:

Initial payment
Can you pay at least 20 percent of the home's value as initial payment (down payment)? If you can not, you should reconsider whether the current is the best time for you to buy it.

Pay 20 percent of the value of the home in advance, gives you the advantage of interest rate is better. Because, you are considered to be less risky for lenders. In addition, fewer also the money you borrow, thereby reducing monthly payments.

Saving cash
Do you have enough cash savings? Ulrich advises people to have at least six months in a monthly mortgage payment savings, before deciding to buy a new home. These savings demonstrate your ability to pay the mortgage after the initial payment.

Stable income
Do you have a steady income and stable every month? Without it, paying a monthly mortgage obligation can be a difficult thing to do. In fact, it is very important for you to not be late paying home loans.

Manisha Thakor, co-author of the book 'On My Own Two Feet,' advise you to keep the total costs associated with housing (mortgage, insurance, property taxes, maintenance, utilities, etc.) are at or below one-third of the income. If more than that amount, it will be difficult for you to pay the mortgage every month.

Credit Score
Before buying a home, make sure you have a good credit score. Check your credit report to ensure the accuracy of a few months before you're ready to buy a home. If necessary, do the best to improve credit score actively.

The better your credit score, the lower the interest rate and monthly installments to be paid.