Although, owning a home that is one's own, is often considered, an essential aspect of the so - called, American Dream, wouldn't it be sensible to properly plan to ensure this doesn't become an absolute nightmare? Over the past 15 years as a Real Estate licensed salesperson for the blue world city overseas block, I have come up with what I oftenrefer to as the RICH IDEAS, for proceeding carefully, when thinking of buying a house. With this in mind, this article will, briefly, consider how to review, look at and analyze the five steps to help you proceed properly, effectively properly, effectively, and wisely, preparing for this purchase, and proceeding accordingly.

1. Build up sufficient fundsto meet many different needs and requirements:It's smart to proceed, as well - prepared in the best way possible from the beginning. Before you begin searching for a house, you should begin saving money, in a systematic way. Be aware that you won't just require funds to cover the down payment (often however, not always 20 percent), but, also, funds for other Closing Costs, like but not limited to the payment of pre-paid real-estate taxes, utilities, and other items, also known as things that are escrowed. In addition, the majority of lending institutions require proof or proof of fundsequal to a number of months, of mortgage payments.

2. Obtain a copy of the Credit Report (if you are married to someone else are both on the report, obtain both):You are entitled, once per year, to request a free duplicate of the Credit Report from one of the major credit organizationsor companies. Check this report thoroughly, and correct any errors. If your rating is not, as high, as an institution would like then take the necessary stepsto increase and improve your rating, earlier, rather than later!

3. Pay - down other debts:Lending institutions use formulas to determine whether a borrower is qualified for receiving funds. They generally focus on the ratio of income to debt. So, you should pay down your other debt, prior to starting the process!

4. Do not add another debt:Avoid acquiring any more credit, no matter how convenientand/or appealing, it might seemat the time. Avoid falling into the trap, of accepting stores charge accounts because doing this can affect your creditworthiness, should you apply for the loan!

5. Find homes within your means:Avoid the trap, of becoming house wealthy, and attempting to purchase a home, that is beyond your means! Be aware of the amount you are able to afford comfortably, and securely and then make your choice carefully, and remain content!