- Be sure to have at least 20% down payment
By having a 20% down payment ready when you go to purchase a new home not only will it lower your monthly mortgage rates, you won’t have to pay for private mortgage insurance. If you don’t have the 20% down payment more often then not you’ll have to have private mortgage insurance….to make things simpler you’ll have an additional payment in addition to a mortgage each month.
- Mortgage shouldn’t be more than 25% take home pay
Sure the bank may offer you a housing loan with a mortgage much much greater than 25%, but do you really wanna be living your life paycheck to paycheck? The house you bought goes from a blessing to a curse!
- Negotiate the price
First off, it’s good to know if you are in a buyers market or a sellers market. Pretty much a sellers market means that the demand for the houses in that area are high, verses a buyers market means that the demand to buy houses are low. Usually in buyers markets you can get away with asking for less than the price.
- Check out the neighborhood
Sure your house may be your dream house at the dream price, but you may want to reconsider if the neighborhood isn’t safe. Not only can a bad neighborhood drive down the value of your house, but do you really want to sleep at night worried about your home getting broken into?