Monthly mortgage payments shouldn’t be more than 35% of your pre-tax income. If you can afford it, aim for a down payment of 20% of the home’s listing price to avoid paying for private mortgage insurance.
Pro tip: Start saving early for your new home and be sure to build in a cushion for moving expenses. Talk with a financial professional to help you develop a personal moving budget.
When you get into your new house, it can be easy to spend your emergency funds on the fun stuff (furniture, decorations, etc.). However, raiding your savings account leaves you vulnerable when real emergencies happen.
Pro-tip: Make sure you have an emergency savings account for times when busted pipes, failing appliances or other surprise expenses pop up.
It’s always a good idea to run a credit report to see where you’re standing. Why? It’s one of the biggest criteria considered by lenders in the mortgage application process.
Pro tip: Don’t have a financial advisor? Talk to one of our non-commissioned financial professionals to help you develop ways to improve your credit score or manage your money for a home purchase.