|
Privacy Policy
Company Listings
Residential Listings Under $160,000
Residential Listings Over $160,000
Homes With Acreage Under $250,000
Homes With Acreage Over $250,000
Farms & Ranches
Commercial
Worth a Click!
Get to Know Bob
Area Info
Code of the West
Live weather report from Salida
Tips for Buyers and Sellers
Bob's Important Quick Tips for Buying and Selling Real Estate
Reasons You Need a Realtor
Questions to Ask Your Realtor
Selling Tips
Things to do When Selling
Low Cost Ways to Spruce-up Your Home
Remodeling and What You Should Know
Tips on Moving
Buyers Tips
Reasons to Own your Own Home
Things to take the Trauma out of Homebuying
How to Prepare for Home Ownership
Finances in Order?
Pros and Cons of Condos
Tips for First Time Buyers
Tips for Buying in a Tight Market
What Your Home Inspection Should Cover
Questions to Ask Your Home Inspector
What not to Overlook on your Final Walk-through
Common Closing Costs
What to Keep from Your Closing
What is Appraised Value
Need a Loan?
About Your Credit
About Homeowners Insurance and Saving Money
What to know about Title Insurance
What to Watch for in a Purchase Contract
Understanding Capital Gains
Tips for Pricing Your Own Home
Jeep, Car and Van Rentals
 |
|
|
|
8 Steps to Getting Your Finances in Order
- Develop a family budget. Instead of budgeting what you'd like to spend, use receipts to create a budget for what you actually spent over the last six months. One advantage of this approach is that it factors in unexpected expenses such as car repairs, illnesses, etc., as well as predictable costs such as rent.
- Reduce your debt. Generally speaking, lenders look for a total debt load of no more than 36 percent of income. Since this figure includes your mortgage, which typically ranges between 25 and 28 percent of income, you need to get the rest of your installment debt—car loans, student loans, revolving balances on credit cards—down to between 8 and 10 percent of your total income.
- Get a handle on expenses. You probably know how much you spend on rent and utilities, but little expenses add up. Try writing down everything you spend for one month. You'll probably see some great ways to save.
- Increase your income. It may be necessary to take on a second, part-time job to get your income at a high enough level to qualify for the home you want.
- Save for a downpayment. Although it's possible to get a mortgage with only 5 percent down—or even less in some cases—you can usually get a better rate and a lower overall cost if you put down more. Shoot for saving a 20 percent downpayment.
- Create a house fund. Don't just plan on saving whatever's left toward a downpayment. Instead decide on a certain amount a month you want to save, then put it away as you pay your monthly bills.
- Keep your job. While you don't need to be in the same job forever to qualify, having a job for less than two years may mean you have to pay a higher interest rate.
- Establish a good credit history. Get a credit card and make payments by the due date. Do the same for all your other bills. Pay off the entire balance promptly.
|
Broker Associate: Robert Burkart e-PRO, GRI