Five Factors That Will Guide You When Buying a Home

Five Factors for Buying a Home – What the Government is saying about Real Estate Negotiations is really worth paying attention to. Five Factors to Consider Before Buying a House. The Federal Housing Administration (FHA) has five suggestions for buyers, or prospective home owners, who want to purchase a new house: Financial Overview, Income, Security, Credit History, and Maintenance History. These are not long-standing rules, but are what the FHA recommends to help buyers make an informed decision about buying a home.

In order to qualify for a mortgage, your credit history has to be good. If you don’t, you may be rejected from getting a loan for a house because your credit rating is poor. Even though your income is not bad, if your home equity is low, you could have a hard time getting a loan for a home. Even if you are in good shape financially, you might have outstanding credit card debt, which can affect your ability to buy a home. In short, you have to be able to convince the bank that you are financially responsible and capable of making and paying monthly payments on a house loan.

Your income is how much money you earn in a month. Your gross monthly income, or a regular monthly income, is the amount of money you bring home after all your expenses are taken care of. This includes your income from employment, social security, and taxes. Your expenses include your mortgage payment, any other loans you may have, and necessary day-to-day expenses such as transportation, groceries, and personal hygiene items. With these expenses are taken into account, your gross monthly income should give you enough money to live comfortably for one year – the equivalent of an average four-hour workweek.

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If you are considering a home loan, then consider your credit score first. Banks and other lenders use your credit score as part of their lending criteria. If you have poor credit, you will have a difficult time getting a loan. You can improve your credit score by paying down any debts you may owe as well as making all your payments on time. This will go a long way toward raising your credit score.

Another factor that buyers must consider is your location. A buyer’s locality has a lot to do with the kind of home that he can afford to buy. For example, if a home is located in a serene, safe neighborhood where there are lots of houses that need renovation, it will cost less to buy.

There are many more factors. Some buyers prefer to focus on one factor and ignore the others. Others prefer to keep all five factors in mind at all times. Whichever method you decide to use, make sure you shop around and compare a wide variety of homes before making your decision.