Archived Blogs First-Time Home Buyer Tax Credit Making Homes Affordable Be Aware of Foreclosure Scams Do You Know Your Rights? 10 Steps to Buying a Home Credit Card Crackdown All About Debt Collection Getting out of Debt

10 Steps to Buying a Home

1. Wait till you’re ready to stay in one place. Transaction costs of buying and selling add up, and you want to stay put for a few years or you might end up losing money.

2. Clean up your credit. Check the accuracy of your credit report and clean up the inaccuracies. A higher credit score leads to a lower interest rate on a mortgage. United Credit Source helps clients raise their scores so they can qualify for home loans.

3. Don’t get in over your head. Look for a house that runs no more than about 2 ½ times your annual salary. Use an online home affordability calculator to get a handle on your debt, expenses and income. All your monthly home payments should not ideally be more than 36% of your income.

4. Save up to put down 20% but even if you can’t, you can still get a loan, most likely.

5. Make sure you’re in a good school district, even if you don’t have kids yet. Strong school districts are a top priority for most home buyers, therefore boosting your property values.

6. Know your rights & find professional help that will look after your best interests and help you out during the bidding process. You want someone looking after you.

7. Decide between interest rate and points. A lower interest rate saves more money in the long run, so when picking a mortgage, you can sometimes pay addition points in exchange for a lower interest rate.

8. Get pre-approved before you go house hunting, so you can look for houses you can afford and be in a better position to make a serious offer.

9. Know your stuff. Base your opening bid on the sales trend in the neighborhood. In other words, do your homework on the house sales of similar homes.

10. Cover your bases. Hire an inspector to find potential problems that could lead to costly repairs later on. Be prepared.


United Credit Source wants to help you find the home you’ve always wanted, but we also want to help you be prepared to make smart financial decisions in the process.