For some people, buying a home is the ultimate dream. After all, it’s not at all easy to purchase a residential property. It’s not like buying a piece of clothing or a pair of shoes. This one involves critical thinking, as well as a lot more money. And, because you’re practically going to live there your whole life, it’s only right that you choose the one most ideal for you.

1. Organize Your
Finances
Before
Purchasing a
Home

2. Organize Your Finances
Before Purchasing a Home
For some people, buying a home is
the ultimate dream. After all, it’s not
at all easy to purchase a residential
property. It’s not like buying a piece of
clothing or a pair of shoes. This one in-
volves critical thinking, as well as a lot
more money. And, because you’re prac-
tically going to live there your whole
life, it’s only right that you choose the
one most ideal for you.
Now, before you go window-
shopping on houses, it is important

3. that you organize your finances
properly. Setting a correct budget will
help ensure that you will not get into
any financial trouble in the future. The
last thing you would want to do is to
buy a home that you cannot afford in
the long-run. Not only would this make
you lose your home eventually, it will
also take a major toll in your financial
health, leaving you buried under piles

4. To avoid that, here are some of the
things you need to know and do
regarding your finances.

5. Examine your financial status
First, assess your current financial
standing. Look at your income and
assets, and weigh them against your
liabilities and expenses. Calculate how
much of your monthly income would
be left after you deduct important
expenditures including household bills,
insurance, tuition fees, and daily
necessities. Once you get that figure,
you will have an idea of how much you

6. can afford for a monthly mortgage pay-
ment. It would be best to set aside a
percentage of the income for savings
so that, even though you’re paying
monthly mortgage, you are still able to
save.

7. Look at your credit report
Your credit rating is very important
for a home mortgage application. Allot
sufficient time to fix any errors in your
credit report. If you have low credit
rating, it is imperative that you
improve it first before you apply for a
mortgage so you don’t waste time and
energy on your application only to be
rejected. To improve your credit rating,
make on-time payments on bills such

8. as credit cards. Minimize credit card
expenses to avoid delayed and default
payments. It is vital to show a lender
that you are one responsible and trust-
worthy person who doesn’t neglect or
run away from financial commitments.

9. Save up for the down payment
The down payment is the largest
chunk of payment you will have to pay
when purchasing a home. The bigger
the amount of your down payment, the
lower your monthly mortgage payment
would be, and the lower the overall
cost of debt would be. If you do not
have any savings, the best way to get
money for down payment would be to
borrow from family or friends who will

10. not charge you exorbitant interest
rates.

11. Get financial advice
If the financial aspect of buying a
house is too complicated for you or
you’re not confident of your knowledge
when it comes to this matter, an
independent financial advisor can be of
great help to you. Take note of the
word, independent. Although inde-
pendent advisors charge a fee, you can
be sure to get objective advice from
them.

12. After you have organized your
finances, the next step to buying a
home would be looking for a location.
In the United States, Colorado is one of
the best options for residential living.
Check out information about Colorado
real estate, Boulder real estate, and
Denver real estate for this purpose.

13. Crucial Steps in Obtaining a
Home Mortgage Loan
Everyone knows that buying a
home isn’t easy or simple. One of the
things that make it complicated is the
part where you would have to apply for
a mortgage loan to finance your
purchase. Once you’ve gotten over this
part, you can proceed to the next step,
which is the fun part where you get to
look for your dream home. But first,
here are the things you need to do
when it comes to getting a loan.

14. Assess your finances
First, you need to assess your
finances. Look at how much you’re
earning and spending every month.
Consider your assets and liabilities, as
well. This will enable you to figure out
how much of a monthly payment you
can afford to pay every month. Don’t
forget to take into account the stability
of your job. It is also a must to fix low
credit rating prior to loan application
to get a better deal.

15. Save up for the down payment
Give yourself time to save up for the
down payment before taking on a loan.
The bigger the down payment you can
make, the lower the amount of the
monthly payment and overall cost of
the loan would be. At least, strive to
reach 20 percent down payment so
that loan repayment wouldn’t be that
difficult.

16. Get quotes from various lenders
After that, the next step would be to
get quotes from various lenders. Banks
are not the only choices. You can also
consider borrowing money from thrift
institutions, mortgage companies and
credit unions. All these lenders would
give you different rates, so it is best
that you get not only a few, but many
quotes to study.

17. Compare and study rates
carefully
When comparing the rates, you just
don’t look at the overall cost of the loan
or the monthly payment. You should
not forget to include the interest rates
and all the other fees, especially the
hidden ones, which may cause the loan
to bloat. Determine also whether the
interest rate offered is fixed or vari-
able. It’s always better to go for the

18. fixed rate, especially if the current
interest in the market is low, so you
can plan your repayments more
efficiently.

19. Gather the requirements
Once you’ve chosen a reputable
lender that will give you the best possi-
ble deal, work on gathering require-
ments. Requirements vary from one
lender to another, but these would
generally include credit reports, proof
of income, identification documents,
and so on.

20. Apply for the loan
Now that everything is in order, you
can apply for the loan. Fill out the
application form and submit the re-
quirements. Wait a couple of days for
the approval of your loan.

21. After you’ve secured a loan, you
can now check out your options on
properties. The first factor you have to
consider is, of course, the location. In
the United States, Colorado is one of
the best choices for residential living.
Study about the Boulder real estate
and Denver real estate to get to know
more about these.