There are many preparations to make before buying a home. Most importantly, perhaps, you need to make sure you don’t buy more house than you can afford. Generally, you shouldn’t be spending more rehab roughly 28-30 percent on your total monthly payment. You also need to budget for your closing costs, which can add thousands of dollars to your home’s cost. It is also responsible to save up the money for a down payment and be aware of your credit score before making decisions.
- The most basic step is always to make sure you’re not buying a more expensive home than you can afford — generally, try not to have your total monthly payment be more than 30 percent of your income.
- Lenders use your debt-to-income ratio to help determine whether they should lend you money, and for what rate.
- You also need to budget for closing costs, which include fees for inspections and appraisals, as well as other items.
“Before getting serious about a property, there are certain key things to make sure you’ve done.”