Step 3: Understanding Financing
Like many things in life, planning ahead is the key to success. So, you should know the price range you can afford before you start shopping. Here are a few things to keep in mind:
• Down payment – this is usually the percentage of the total cost of a home that you’ll need to pay. The more money you put down, the more money you’ll save on monthly payments and, in the long run, interest paid
• Knowing what you can afford – how much house you can afford comes down to 3 factors: your monthly mortgage payment, your down payment and the amortization period or length of time it will take to pay off the loan
• Getting pre-approved – this will really help you figure out what you can spend on a home because you’ll know before you start shopping. And you’ll be protected against rising interest rates as well
• Step 1: Deciding to Buy a Home
• Step 2: Choosing a Real Estate Agent
• Step 3: Understanding Home Financing
• Step 4: Finding the Right Home to Buy
• Step 5: Making an Offer on a Home
• Step 6: What to do Before Buying a House
• Step 7: Closing on a Home
• Step 8: Moving into Your New Home
