Becoming a homeowner is an exciting time in persons life. Good money management is the key to staying in your newly purchased home. It is a good practice to get your finances in order prior to searching for a new home. Make a budget which includes weekly or monthly take home income. Be sure to include all monthly debts such as car payment, mortgage payment, utilities, food, miscellaneous items, entertainment, an emergency fund, and savings. How much can you afford to pay each month for a mortgage payment?
Is your credit in good standing? Do a credit check on yourself. You can find this information online or request through the mail through many different credit reporting bureaus. You want to make sure that there are no debts that belong to you. There may be an item or items listed that do not belong to you, so it is best to dispute those incorrect debts in a timely fashion. The better your credit looks the better mortgage interest rate you will qualify for. This will also help with the amount your mortgage payment will be each month and the amount of years it will take to pay off the mortgage.
Do not buy more house than you can afford. Let’s say you do qualify for a loan of £200,000, well maybe you can find a house to purchase that is £150,000. That reduces the amount of money you are borrowing significantly and also reduces the amount of your mortgage payment per month. You do not want to put yourself in a position where you are living paycheck to paycheck and bankrupt yourself. You have to consider there are many times when you may have a house emergency. Have a special account or extra money set aside for those unexpected house repairs. This will help to you avoid going bankrupt.