Organize Your Finances Before Purchasing a Home - Boulder Real Estate

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Organize Your Organize Your Organize Your Finances Finances Finances Before Before Before Purchasing a Purchasing a Purchasing a Home Home Home

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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.

Transcript of Organize Your Finances Before Purchasing a Home - Boulder Real Estate

Page 1: Organize Your Finances Before Purchasing a Home - Boulder Real Estate

Organize Your Organize Your Organize Your

Finances Finances Finances

Before Before Before

Purchasing a Purchasing a Purchasing a

HomeHomeHome

Page 2: Organize Your Finances Before Purchasing a Home - Boulder Real Estate

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 in-

volves critical thinking, as well as a lot

more money. And, because you’re prac-

tically going to live there your whole

life, it’s only right that you choose the

one most ideal for you.

Now, before you go window-

shopping on houses, it is important

Organize Your Finances Organize Your Finances Organize Your Finances

Before Purchasing a HomeBefore Purchasing a HomeBefore Purchasing a Home

Page 3: Organize Your Finances Before Purchasing a Home - Boulder Real Estate

that you organize your finances

properly. Setting a correct budget will

help ensure that you will not get into

any financial trouble in the future. The

last thing you would want to do is to

buy a home that you cannot afford in

the long-run. Not only would this make

you lose your home eventually, it will

also take a major toll in your financial

health, leaving you buried under piles

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To avoid that, here are some of the

things you need to know and do

regarding your finances.

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Examine your financial statusExamine your financial statusExamine your financial status

First, assess your current financial

standing. Look at your income and

assets, and weigh them against your

liabilities and expenses. Calculate how

much of your monthly income would

be left after you deduct important

expenditures including household bills,

insurance, tuition fees, and daily

necessities. Once you get that figure,

you will have an idea of how much you

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can afford for a monthly mortgage pay-

ment. It would be best to set aside a

percentage of the income for savings

so that, even though you’re paying

monthly mortgage, you are still able to

save.

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Look at your credit reportLook at your credit reportLook at your credit report

Your credit rating is very important

for a home mortgage application. Allot

sufficient time to fix any errors in your

credit report. If you have low credit

rating, it is imperative that you

improve it first before you apply for a

mortgage so you don’t waste time and

energy on your application only to be

rejected. To improve your credit rating,

make on-time payments on bills such

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as credit cards. Minimize credit card

expenses to avoid delayed and default

payments. It is vital to show a lender

that you are one responsible and trust-

worthy person who doesn’t neglect or

run away from financial commitments.

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Save up for the down paymentSave up for the down paymentSave up for the down payment

The down payment is the largest

chunk of payment you will have to pay

when purchasing a home. The bigger

the amount of your down payment, the

lower your monthly mortgage payment

would be, and the lower the overall

cost of debt would be. If you do not

have any savings, the best way to get

money for down payment would be to

borrow from family or friends who will

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not charge you exorbitant interest

rates.

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Get financial adviceGet financial adviceGet financial advice

If the financial aspect of buying a

house is too complicated for you or

you’re not confident of your knowledge

when it comes to this matter, an

independent financial advisor can be of

great help to you. Take note of the

word, independent. Although inde-

pendent advisors charge a fee, you can

be sure to get objective advice from

them.

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After you have organized your

finances, the next step to buying a

home would be looking for a location.

In the United States, Colorado is one of

the best options for residential living.

Check out information about Colorado

real estate, Boulder real estate, and

Denver real estate for this purpose.

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Everyone knows that buying a

home isn’t easy or simple. One of the

things that make it complicated is the

part where you would have to apply for

a mortgage loan to finance your

purchase. Once you’ve gotten over this

part, you can proceed to the next step,

which is the fun part where you get to

look for your dream home. But first,

here are the things you need to do

when it comes to getting a loan.

Crucial Steps in Obtaining a Crucial Steps in Obtaining a Crucial Steps in Obtaining a

Home Mortgage LoanHome Mortgage LoanHome Mortgage Loan

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Assess your financesAssess your financesAssess your finances

First, you need to assess your

finances. Look at how much you’re

earning and spending every month.

Consider your assets and liabilities, as

well. This will enable you to figure out

how much of a monthly payment you

can afford to pay every month. Don’t

forget to take into account the stability

of your job. It is also a must to fix low

credit rating prior to loan application

to get a better deal.

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Save up for the down paymentSave up for the down paymentSave up for the down payment

Give yourself time to save up for the

down payment before taking on a loan.

The bigger the down payment you can

make, the lower the amount of the

monthly payment and overall cost of

the loan would be. At least, strive to

reach 20 percent down payment so

that loan repayment wouldn’t be that

difficult.

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Get quotes from various lendersGet quotes from various lendersGet quotes from various lenders

After that, the next step would be to

get quotes from various lenders. Banks

are not the only choices. You can also

consider borrowing money from thrift

institutions, mortgage companies and

credit unions. All these lenders would

give you different rates, so it is best

that you get not only a few, but many

quotes to study.

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Compare and study rates Compare and study rates Compare and study rates

carefullycarefullycarefully

When comparing the rates, you just

don’t look at the overall cost of the loan

or the monthly payment. You should

not forget to include the interest rates

and all the other fees, especially the

hidden ones, which may cause the loan

to bloat. Determine also whether the

interest rate offered is fixed or vari-

able. It’s always better to go for the

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fixed rate, especially if the current

interest in the market is low, so you

can plan your repayments more

efficiently.

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Gather the requirementsGather the requirementsGather the requirements

Once you’ve chosen a reputable

lender that will give you the best possi-

ble deal, work on gathering require-

ments. Requirements vary from one

lender to another, but these would

generally include credit reports, proof

of income, identification documents,

and so on.

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Apply for the loanApply for the loanApply for the loan

Now that everything is in order, you

can apply for the loan. Fill out the

application form and submit the re-

quirements. Wait a couple of days for

the approval of your loan.

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After you’ve secured a loan, you

can now check out your options on

properties. The first factor you have to

consider is, of course, the location. In

the United States, Colorado is one of

the best choices for residential living.

Study about the Boulder real estate

and Denver real estate to get to know

more about these.