You’ve spent a huge amount of cash for your wedding and honeymoon, and now, you’re thinking of spending even more to buy your dream house. While you can put this off for a few years, buying a house though is an expense that you can’t get away from if you’re going to raise your own family. Let’s face it; your future children are going to need their own space, and you have to prepare for that.
Buying a house is not a simple matter. It’s going to create a huge dent on your budget each month, and you have to be very strict with yourself to meet the monthly dues. Failure to pay your monthly payment on time can lead to more problems. For this reason, here are some things worth considering by newlyweds.
Check Your Credit Scores
If you’re thinking of purchasing a new house, be sure to have your credit report and score checked for any discrepancies. If there are, then you need to have the issues addressed immediately since it can sometimes take up to about three months for any discrepancies to be resolved. Remember, lending companies and home builders will take a look at your credit history before you sign any contract, and if there are any problems or discrepancies, they will be questioned. It’ll be a huge headache on your part explaining the problems and discrepancies to their loan officer, so remove potential credit snags by having your credit history checked and preapproved.
Of note; having your credit history preapproved for home loan will make it easier for you to understand mortgage as well as real estate terms. Plus, it’ll also help you set your budget properly as the preapproval process will already give you a good inkling of what homes you can afford.
Know Your Budget
Purchasing a new house is pretty expensive since it’ll mean a huge dent on your monthly income. You also have to stick with it because failure to pay the monthly dues can not only mean potential loss of your property but a bad credit report as well.
While it’s tempting to purchase the house of your dreams, you have to understand that spending way beyond what you can afford can be your downfall. For this reason, choose a house that you can afford, taking into consideration your monthly expenses, monthly savings, and enough cash for emergency expenses. Make sure that you have enough money in your savings account to cover your regular living expenses should one of you lose your job or should an emergency arise that needs a huge amount of cash. Your savings should be enough to cover at least three months to half a year, enough time to look for a new job.
Of note though; it’s wiser to start looking into purchasing a new house after you’ve made sure that this very important step is covered.
Choose a Good Lending Company and Home Builder
It’s also very important to “shop around” for good lending companies and home builders. Look for companies that offer low interest rates, but be careful though of those that offer too low interest rates. Always check the reputation of the company and their relationship with their clients before signing any contract with them.
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Jennifer Dalley is a freelance content provider who writes for http://www.Hayden-Homes.com. Through these housing loan tips, she hopes to help newlyweds own the house of their dreams.