Category — Home Buying Tips

One large factor in being approved for a home loan is your debt relative to your income. For many people, it may not be an easy task to boost income, and you’ve got to demonstrate an increase in income over time to have it count for mortgage qualification. Reducing your debt is a faster solution; you can achieve results within months instead of years, and the effects are positive and far-reaching.  

It doesn’t matter how successful you are, financially – if a lender can’t see it, your financial success doesn’t count. You could have a six-figure income with no debts and a great stock portfolio, but unless you can show documentation to the lender, it won’t matter. Create a complete, easy-to-follow paper trail to demonstrate your financial health when you’re ready to buy a home.  

One of the big things lenders look at when they’re deciding whether to approve a home mortgage is your qualifying income. Your income has to be high enough to cover all of your financial responsibilities; most lenders look for a ratio based on percentages of your total income. If the mortgage for the home you want to buy would be too high based on your income, you might not be able to qualify for the mortgage. One way to boost your borrowing power is to lift your qualifying income.

Buying a home is something that most people plan for a long time. Many people rent apartments for years while they wait to be in the financial position to buy a home, and decide where they want to settle down. Ultimately, this strategy can cost you valuable time and money. You could lose years of opportunity to build wealth by renting, so make home ownership your first priority in your quest for financial success.

As a home buyer and as an individual, you need to understand that you control your buying and investing power. The estimates that you get from lenders only shows a small portion of your financial life, shown through the lens of that lender’s product. It’s up to you to take a big-picture view of your buying and investing power, both in the present and in your future. Don’t rely on lenders to tell you what you can and cannot do; decide for yourself what you can afford and plan your life according to your vision.  

The key to achieving long-term success is to have a plan. You need to know where you want to be in 5, 10 and 20 years in order to begin working toward those goals. The same thing applies to home ownership. Envision the properties you want to own in 5, 10 or 20 years. Do you want to own a single-family home for the rest of your life, or do you want to own real estate as an investment and source of income? Is there a certain type of property you want to own, or properties you’d like to generate income?  

Buying a home presents a lot of challenges at the best of times. Buyers must find their dream home, make an offer, negotiate a price and get financing. For more and more families, obtaining financing presents its own challenge.

Saving money for a downpayment on a home is the biggest hurdle to home ownership that many people face. In our consumer-driven society, saving money is difficult at the best of times, and can be downright impossible when stakes are high and you’ve got to save a big dollar amount. If you’re thinking of buying a home but not sure how you’ll ever save enough money for a down payment, consider these strategies:  

Residential real estate is a great investment option for a variety of reasons. Real estate in general is a stable investment that historically always appreciates, and typically provides a better return on investment than any other low-risk investment option. They’re also easier to manage than other investment types. Beyond the hype, though, what are the real financial benefits of residential real estate investing?  

Real estate investments are some of the best investments you can make in today’s volatile market. Stocks are unpredictable, and real estate can return a far higher profit than traditional savings and retirement accounts. The right real estate investment also generates cash flow on an ongoing basis. If you’re thinking about real estate investment, residential properties are some of the best possible investments.