(1888PressRelease)
April 20, 2006 - SANTA CLARA, CA - There are many steps that potential home buyers must go through before they make their big decision on which home to buy. Furthermore, the process of finding a mortgage loan can be an even more arduous task. Below are three tips on what to do before you take the big plunge into home ownership.
Pay off other debts first:
Many home buyers are so consumed with the process and prospect of purchasing a new home that they forget about the debt that they already carry on their credit cards and other loans. These other debts often carry significantly high interest rates and should probably be taken care of before the borrower takes on the large debt that a mortgage will present. Pay off your other debts before you get deep into the home buying process, even if it means that you will pay less on your down payment.
Use the Internet:
The Web is a great place to start when looking for a home. Not only can you look at homes from the comfort of your current abode, but you can also get helpful information on the neighborhood that your home-of-interest is located in. Certain sites will be able to tell you what kind of economic class your potential neighbors are in, as well as the quality of education, crime rates, and other important tidbits of information. You can also see how much homes in your area of interest were sold for recently.
Determine how much you can afford: The rule of thumb that most home buyers go by is that your annual mortgage payments along with the taxes and homeowner’s insurance should not be more than 28% of your gross annual income. Of course, you should also make sure that you have enough for a down payment as well as for closing costs, which can be up to 5% of the home’s value.
Now replace those heavy coats, mittens, winter caps and boots with shorts, shades, sandles and a hawaiian shirt and let the house hunting season begin!
For more Mortgage Loan and Real Estate tips and information, please visit us at http://www.allmortgagenews.com
Happy Hunting!
