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Organize Your Finances Before Purchasing a Home - Boulder Real Estate


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For some people, buying a home is the ultimate dream. After all, it’s not at all easy to purchase a residential property. It’s not like buying a piece of clothing or a pair of shoes. This one involves critical thinking, as well as a lot more money. And, because you’re practically going to live there your whole life, it’s only right that you choose the one most ideal for you.

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Organize Your Finances Before Purchasing a Home - Boulder Real Estate

  1. 1. Organize Your Finances BeforePurchasing a Home
  2. 2. Organize Your Finances Before Purchasing a Home For some people, buying a home isthe ultimate dream. After all, it’s notat all easy to purchase a residentialproperty. It’s not like buying a piece ofclothing or a pair of shoes. This one in-volves critical thinking, as well as a lotmore money. And, because you’re prac-tically going to live there your wholelife, it’s only right that you choose theone most ideal for you. Now, before you go window-shopping on houses, it is important
  3. 3. that you organize your financesproperly. Setting a correct budget willhelp ensure that you will not get intoany financial trouble in the future. Thelast thing you would want to do is tobuy a home that you cannot afford inthe long-run. Not only would this makeyou lose your home eventually, it willalso take a major toll in your financialhealth, leaving you buried under piles
  4. 4. To avoid that, here are some of thethings you need to know and doregarding your finances.
  5. 5. Examine your financial status First, assess your current financialstanding. Look at your income andassets, and weigh them against yourliabilities and expenses. Calculate howmuch of your monthly income wouldbe left after you deduct importantexpenditures including household bills,insurance, tuition fees, and dailynecessities. Once you get that figure,you will have an idea of how much you
  6. 6. can afford for a monthly mortgage pay-ment. It would be best to set aside apercentage of the income for savingsso that, even though you’re payingmonthly mortgage, you are still able tosave.
  7. 7. Look at your credit report Your credit rating is very importantfor a home mortgage application. Allotsufficient time to fix any errors in yourcredit report. If you have low creditrating, it is imperative that youimprove it first before you apply for amortgage so you don’t waste time andenergy on your application only to berejected. To improve your credit rating,make on-time payments on bills such
  8. 8. as credit cards. Minimize credit cardexpenses to avoid delayed and defaultpayments. It is vital to show a lenderthat you are one responsible and trust-worthy person who doesn’t neglect orrun away from financial commitments.
  9. 9. Save up for the down payment The down payment is the largestchunk of payment you will have to paywhen purchasing a home. The biggerthe amount of your down payment, thelower your monthly mortgage paymentwould be, and the lower the overallcost of debt would be. If you do nothave any savings, the best way to getmoney for down payment would be toborrow from family or friends who will
  10. 10. not charge you exorbitant interestrates.
  11. 11. Get financial advice If the financial aspect of buying ahouse is too complicated for you oryou’re not confident of your knowledgewhen it comes to this matter, anindependent financial advisor can be ofgreat help to you. Take note of theword, independent. Although inde-pendent advisors charge a fee, you canbe sure to get objective advice fromthem.
  12. 12. After you have organized yourfinances, the next step to buying ahome would be looking for a location.In the United States, Colorado is one ofthe best options for residential living.Check out information about Coloradoreal estate, Boulder real estate, andDenver real estate for this purpose.
  13. 13. Crucial Steps in Obtaining a Home Mortgage Loan Everyone knows that buying ahome isn’t easy or simple. One of thethings that make it complicated is thepart where you would have to apply fora mortgage loan to finance yourpurchase. Once you’ve gotten over thispart, you can proceed to the next step,which is the fun part where you get tolook for your dream home. But first,here are the things you need to dowhen it comes to getting a loan.
  14. 14. Assess your finances First, you need to assess yourfinances. Look at how much you’reearning and spending every month.Consider your assets and liabilities, aswell. This will enable you to figure outhow much of a monthly payment youcan afford to pay every month. Don’tforget to take into account the stabilityof your job. It is also a must to fix lowcredit rating prior to loan applicationto get a better deal.
  15. 15. Save up for the down payment Give yourself time to save up for thedown payment before taking on a loan.The bigger the down payment you canmake, the lower the amount of themonthly payment and overall cost ofthe loan would be. At least, strive toreach 20 percent down payment sothat loan repayment wouldn’t be thatdifficult.
  16. 16. Get quotes from various lenders After that, the next step would be toget quotes from various lenders. Banksare not the only choices. You can alsoconsider borrowing money from thriftinstitutions, mortgage companies andcredit unions. All these lenders wouldgive you different rates, so it is bestthat you get not only a few, but manyquotes to study.
  17. 17. Compare and study rates carefully When comparing the rates, you justdon’t look at the overall cost of the loanor the monthly payment. You shouldnot forget to include the interest ratesand all the other fees, especially thehidden ones, which may cause the loanto bloat. Determine also whether theinterest rate offered is fixed or vari-able. It’s always better to go for the
  18. 18. fixed rate, especially if the currentinterest in the market is low, so youcan plan your repayments moreefficiently.
  19. 19. Gather the requirements Once you’ve chosen a reputablelender that will give you the best possi-ble deal, work on gathering require-ments. Requirements vary from onelender to another, but these wouldgenerally include credit reports, proofof income, identification documents,and so on.
  20. 20. Apply for the loan Now that everything is in order, youcan apply for the loan. Fill out theapplication form and submit the re-quirements. Wait a couple of days forthe approval of your loan.
  21. 21. After you’ve secured a loan, youcan now check out your options onproperties. The first factor you have toconsider is, of course, the location. Inthe United States, Colorado is one ofthe best choices for residential living.Study about the Boulder real estateand Denver real estate to get to knowmore about these.