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5 Tips to Save for a House
Buying a home is an accomplishment many Americans are always striving for. To reach this goal takes time and consideration before diving into this financial commitment so that you may find your dream home. There are additional costs besides your mortgage payment that are associated with owning a home that you must also prepare for. As a homeowner I and a real estate broker, these useful tips can lead you on the financial path to eventually own a home.
Determine how much you need
Before you can create a budget or begin to save, you should determine what you are looking for in your home. Consider how many bedrooms, square footage, and the area you would like to look for a house. Don’t overestimate how much you would like to have as that could mean higher mortgage payments.
Speak with a mortgage loan officer when possible to determine what types of loans you could qualify for. “Generally speaking, your housing expense should not exceed 28% of your stable monthly income,” states moneyunder30. The minimum down payment for a house is 20% but there are better deals that could reach up to 3%. A mortgage lender will help you determine how much you can afford based on your own financial circumstances.