This is a simple guide on how to buy a house by Mortgage.info.

1. How To Buy A House
With the property prices growing slowly but steadily and the interest rates remaining quite low,
now may be the perfect time for buying a home. This is probably the biggest investment that you
will ever make in your life. For this reason, you have to use a strategy which will help you secure
the best deal on both the mortgage that you will need and the property. Here is some practical
advice on how to buy a house.
Get Ready
The first thing which you need to check is whether you can actually afford to buy a house and
keep up with the mortgage payments. According to financial experts, the maximum property
price that you should pay must not exceed two and a half times your annual income. Similarly,
your home loan payments should not be greater than 30% of your monthly income. It is best if
you have debt-to-income ration of 45% or lower. A mortgage calculator can help you decide how
much house you can afford to buy.
Commercial lenders require home buyers to place down payments of at least 10%. If you can
afford to pay 20% of the property price, you will save considerably on interest and on mortgage
insurance. If you do not have sufficient savings, you should consider the government-backed
loans available to first time home buyers. The FHA loans require down payment of 3.5% only
and are easier to qualify for.
You need to have a credit score of at leas 680 in order to qualify for a conventional home loan
and minimum score of 620 for an FHA loan. The higher your score is the lower the interest will
be. You should start working on boosting your score well before making a loan application.
Choose a Loan
You should consider the types of mortgage loans available and select the right one for you. The
fixed-rate loans are recommended for risk-averse individuals who plan to stay on the property for
over five years.
The variable-rate loans are riskier, but they can save you money in the short term. They are a
good choice for buyers who plan to keep their house for a short period of time and for those who
will consider the refinancing mortgage option at a later stage. Such individuals can also consider
other high-risk home loans like interest-only and balloon ones. Riskier loans should be used by
house buyers who will be able to qualify for a new mortgage at any time.
Once you know what type of home loan you want, you can start shopping around to find the right
deal. In this case, you can choose to use an online service like Lending tree or to work with a
mortgage broker. The more help you can get the better.
Get Preapproved
It is always best to get preapproved for a mortgage before you start your search for a property to
buy. This will give you more precise search criteria while sellers will be more willing to negotiate

2. with you and to accept your bid. You need to supply the full set of application documentation in
order to get approved for a home loan. The approval will take a while. If you want to speed up
things, you can use the services of an online mortgage lender like Quicken Loans.
Choose a House
You have to select a property which matches your requirements and which you can afford.
Consider not only the amenities of the property, but the neighborhood as well. Houses close to
good schools, for instance, are not only a dream for families with kids but tend to increase in
price at a higher rate over time. It is best if you use the services of a real estate agent to choose a
house and organize the paperwork for the bidding and the property purchase.
Make a Bid
It is best if you make a bid based on the property sales prices in the area for the past three
months. Follow their trend against the asked prices to make a winding bid. Additionally, you
must have full house inspection performed by an independent expert to ensure that the property is
in good condition and that it will not require costly repairs in the future.
When you buy a house, you must have perfect understanding of all the agreements that you sign
and have a clear idea about the mortgage payments that you will make and the condition of your
property.