If you are thinking of purchasing a new home, there are some experts out there who believe that you should be getting on with it. Interest rates are currently at a 65-year record low, while national home prices have at long last hit rock bottom and are finally on the rise once again. In spite of the rumors, loans are still available for anyone who has a stable income, good credit history and sufficient savings.
You should not jump right in completely unprepared, of course. Regardless of whether you are a newcomer to the world of real estate or a seasoned purchaser, there are a number of strategies that you should catch up on in order to aid you throughout the buying and relocation process.
Working out what size house you will be able to afford when you move will mean that you have to take a close look at a number of different factors. These include your credit history, annual gross income, how much your down payment is and the current mortgage rates.
In the market at the present time, you should expect that a down payment will generally be somewhere between 5% and 20% of the price of the house. It is recommended by lenders that your mortgage payment should be under 28% of your gross income on a monthly basis. Taking out a mortgage is a long-term and serious commitment, and should not be entered into lightly.
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