Date Posted: 2012-06-25 01:28:09
Site Posted: Myproperty.ph
When buying a house, money is often the biggest concern, especially for those who tend to live from paycheck to paycheck. Purchasing a property requires a lot of strict saving and budgeting, preferably starting more than two years before you plan on actually buying one.
Like any big life decision that involves money, you have to be disciplined and learn to make certain sacrifices. These are some of the ways that you can make sure that your finances will be fit by the time you buckle down and make an offer on a house or any property.
1. Put away some cash
If you’re renting right now, you have to know how much you should put away in a savings account for future mortgage payments without depleting your monthly income. Once you’ve made a decision on how much you will save each month, make sure that you deposit this amount regularly. Aside from coming out in two years with a possibly sufficient down payment, this kind of activity will show a lender that you can actually afford to buy property.
2. Do some research
It may not be advisable to make an offer as early as now, but that doesn’t mean that you can’t look up houses for sale online or in the newspaper, or attend open houses. This will give you an idea as to how much houses are selling in the neighborhood you prefer, and will also let you know how fast and how far up or down prices will go in two years. It would also be advisable for you to start visiting mortgage lenders to find out how easy or difficult it would be for you to be given a home loan pre-approval.
3. Improve your credit
It’s common knowledge that having a bad credit history hinders anyone from buying a house, which is why it’s important to work on building a strong credit history. Lenders see people with a low credit score as a high-risk client, so they might hesitate you grant your loan or deny it altogether. The best way for you to improve your credit standing is to decrease your debt and to pay your bills on time.
If your plan is to buy a house in two years, you will have to keep a close watch on your budget and hold off on major purchases until way later. It may seem like a lot of work, but if it will bring your closer to your dream of owning a home, it’s a sacrifice worth making.
Jillian Cariola, Writer
(cover image by mconnors)
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