5 Tips To Help Achieve Your Homeownership
(some creative planning and resourcefulness)
1. Reduce your overall debt load beforehand: Outstanding car loans, credit cards and lines of credit will reduce the mortgage amount you qualify for. Eliminating these debts first will increase the mortgage you are able to obtain.
2. Increase the amount of your down payment: The more money a borrower has available upfront, the less of a mortgage they need to qualify for.
3. Consider joint ownership: Buying a home with a trusted friend or family member who wants to invest in real estate or get into their own place can lessen the purchase burden. Two (or more) people with income on the application equates to a higher mortgage that you can qualify for.
4. Take in a roommate to prevent being house poor: If you qualify for the mortgage amount you need, but are concerned about ongoing maintenance costs, then income from a roommate(s) can provide a solid emergency fund. Set the rental income aside so that the money is available for upgrades or the inevitable repairs every homeowner faces
5. Get rid of your car: If you want to own a home in the city, you can free up room in your budget by eliminating your vehicle costs. Owning a vehicle is a significant financial investment, consisting of much more than a monthly loan or lease payment. There are also the added costs for insurance, parking, maintenance and repairs.
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