buying a house Sooner or later in our life we come to decision to buy a house. You may be renting it for a long time, but there will come a day when you’ll consider buying your own property. However, buying a house is not as easy as buying many other things. Unfortunately, it happens quite often when consumers get mortgages and purchase houses they can’t afford so they use loans with no credit check to make the necessary payments. It’s important to understand all the seriousness of the process, make smart steps without a hurry and then, most likely, you will find a get your dream house. We have gathered top 5 tips, don’t hesitate to use them!

Don’t Rush

Never buy a home in a hurry. Shopping around is the most important thing to do in the beginning of the home buying process. Moreover, shop around not just for a home, but for a mortgage and for homeowners insurance. It’s important to buy a home you really like because you buy it for years! Don’t rush to make a final decision, take your time and consider all the options. Also, keep in mind that once you have found a house you like but it’s under contract, you still can make a backup offer on this home. Besides, right now you can check mortgage loans at Personal Money Service.

Save Up for Down Payment

Buying a home without a down payment is possible but it’s not the best solution. That’s why the 1st step we mentioned is so important – take your time and get ready to make such a big purchase. If you put 20% down, you will get a better interest rate, smaller payments and, also, you’ll be able to qualify for more loans. As only you started thinking about buying a home, start saving for the down payment.

Get Your Credit in Order

Except of saving for the down payment, it’s necessary to make an overview of your financial situation and fix mistakes if there are some. It’s much easier to qualify for a mortgage if you have a good credit! Consumers with high credit scores always take advantage of high interest rates, so take steps to improve your credit to get the best deal possible.  Also, a part of this step is keeping your finances in order, because every wrong step can negatively impact your credit score. Pay bills on time and avoid any credit mistakes. Even a small mistake can significantly impact your credit, so before buying a house, it’s worth being extremely careful.

Buy Less House than You Can Afford

best tips to buy a houseYou can use an online calculator to figure out how much you can afford considering your income and debt. Still, it will be much better for your financial health if you will choose a cheaper option than calculators tell you. There’s a 30/30 rule suggested by Financial Samurai: the idea is to make 20% down payment, accumulate 10% in savings and your mortgage should be less than 30% of your gross income. Bonus: check cost of living in 10 major US cities to estimate your chance to buy a home there.

Request a CLUE Report on a Home

It’s important to request a CLUE Report on a house to see every insurance claim made on it within last few years. In some states home sellers are required by law to fix any home damage and have all the repairs done. While walking through the house, it’s highly necessary to pay attention to its condition! Look for signs of possible big problems, for example, cracks in the foundation or water stains on the ceilings or walls. Every problem with your home will cost you money, so it’s better to be attentive and make your own list of things to check before making a final decision.