Tips on how to prepare for a home loan??????
I would like to purchase my first home within the next 4 years. I would like to know what sort of things I need to be aware of now, in order to buy a home and secure a loan with little stress. I just graduated from college and am looking for employment (right now I serve in a restaurant while I search for the right job). I have started saving and I also started an IRA. My credit is ok, had some problems about 8 years ago but none now. What are my best options for saving during this period, savings account, CD’s, bonds, market, etc?????? Is there anything else I should be doing as far as credit? I have 2 cards with very low limits (both under $500) that I pay off every month.
Any suggestions would help.
March 1st, 2010 at 5:37 pm
Save 20% of the value of the home for your down payment.
Keep doing what you are doing with your credit cards. Do not close the cards. You will need to show the length of credit.
Always pay on time and above the minimum balance. Keep your credit ratio down to under 30%.
Best options for saving money:
Savings account – the interest rate is too low. But it is usually readily available to you.
CD’s and Bonds are better interest rates, but you have to wait on maturity to not suffer a penalty.
Right now, I would stay away from the market, unless you really know what you are doing.
The market is for long term planning, and the 4 years you are looking at is too short of a period – you might lose everything.
March 1st, 2010 at 6:12 pm
Home loans are now available to many people for whom they would have been out of the question just a few years ago. You’d be in much better shape to bargain for better interest rates if you had a more impressive credit history, but if the house you want is the deal you