Hurdles to homeownership are steep. First, you have to determine what you want and need in your dream home — and find property within your budget.
As if that weren’t enough, you then have to wade through a sea of red tape to qualify for a mortgage.
It’s enough to make you throw up your hands in despair and prepare for a lifetime of renting, as that seems like the only option.
But it’s not.
Despite the difficulties, you can get your hands on an affordable home and start living the American Dream — if you’re careful and make these maneuvers in financing and property hunting.
1. Do Your Research
Do you know what a debt-to-income ratio is? You should, as it’s one of the major factors a lender will consider before they grant you a mortgage.
This ratio refers to how much money you owe monthly compared with what you make, which is simple enough.
However, there’s a whole lot of other terminology you need to wrap your head around. Know the lingo and what to expect before you start house hunting. That way, there will be no surprises.
2. Revamp Your Monthly Budget
You want the debt-to-income ratio to be as low as possible to qualify for a mortgage — which means you need to pay off debt.
You’ll need money, but rather than wait for it to fall from the sky, reduce your spending and watch your bank balance grow.
For the best results, use an app to track your outgoing dollars and cents.