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The market for new houses is now experiencing a great increase in sales and profit. Old houses are now being traded for newer ones. A great way to finance your new home purchase is through a good mortgage.
If there are instances that you are not eligible because of some credit concerns, you should not worry. You can still plan for it in the future. It is probable that in a relatively short period of time, you can buy a home if you consider the following tips:
1. Curtail Purchases
Do not make too many purchases for the next couple of months. Instead, prepare money for your down payment. The reason for this is that even a debt of only $15,000 dollars will still appear unpleasant to the mortgage lenders credit score system.
2. Choose an Affordable Home
Do not choose a very costly home especially if it exceeds a healthy loan to income ratio. You have to ensure that you are able to pay for your debt load consistently, so before choosing the type of house you want, consider your income first.
3. Shop for the Right Mortgage
Shop carefully for the right mortgage before applying. Make sure that you only apply for the mortgage you are most likely to qualify for. You may have to submit multiple applications but keep in mind, too many applications will decrease your credit scores. In order to qualify, you are required to submit your credit information to a mortgage lender and you must allow your lender to get your credit report and debt/income data.
4. Maintain Your Budget
Do not forget to maintain your expenses as before taking a mortgage. Keeping a tight budget and continuing to save will help put you in the best financial position for the long-term.
5. Make Your Mortgage Payment a Priority
Keep in mind that you are partaking on a serious commitment. Being a home owner is different than renting. Missing a mortgage payment is a lot more serious than the fine of missing a rent payment.
Therefore, if you are planning to apply for a mortgage, be sure to remember these five important things to give you an advantage at successfully finding the best mortgage.
Bill Manassero is the founder/top dog at “The Old Dawg’s REI Network,” a blog, newsletter and podcast for seniors and retirees that teaches the art of real estate investing. His personal real estate investing goal, which will be chronicled at olddawgsreinetwork.com, is to own/control 1,000 units/doors in the next 6 years. Prior to that, Bill and his family lived in Haiti for 11 years as missionaries serving orphaned, abandoned and at risk children.
