Homes are not some casual product that can be picked up whenever one wants. A home is a life changing purchase that takes diligence and constant care to upkeep. When a buyer is ready to move from a life of landlords and management companies into a life of independence, responsibility, and ownership, they have a few obstacles they will have to overcome.

First, a wannabe owner will need to really get the act together and save, save, and save some more. Homes are the most expensive thing that the average American will buy in their lifetime. The homeowner will need to have the funds for a down payment. Down payments ensure a lender that the borrower will be personally invested in the home and will not just walk away at the drop of a hat. Down payments are also desired if the homeowner wants to have a reasonable interest rate and get a reasonable mortgage. Also, the closing costs can cost up to three percent of the entire cost of the home. Closing costs cover the appraiser, the title company and insurance, the inspector, the bank, the lawyer, the realtor, and all the other never ending costs attached to buying a home.

On top of the fact that a home buyer will be required to convince a loan officer at a bank that they will be able to carry the responsibility of paying back over an extended period of time over eighty percent of the homes value. Meaning the lender, often a bank, lends out a huge amount of money and trusts that they will get the money back plus some.

The first thing that a bank is going to look at is the credit report. The credit report is a credit score that is created by a financial expert to best represent an individual’s ability to make payments on time, or simply handle debt. If a borrower is always late or off with the money they borrow, the bank will want to know because a bank does not like to deal with individuals who do not make good on their obligations or payments. Great ways to increase a credit score is to first monitor it and make sure that any discrepancies are taken care of and not messing things up unfairly. Second, making all payments on time will help improve a credit score on things like car loan, utilities, rent, student loans and credit cards.

Lastly, getting the right house is about staying within your means. Paying too much on a home is like volunteering to serfdom, you will be a slave to the monthly house payment and never be able to take a vacation or a break. Staying within ones means is critical because once one falls behind, then the likelihood of loosing all credibility is likely and loosing a lot of the important things in life. Stay within your means when deciding on the price. Having a home that you can truly enjoy and not overly stress about will be a huge blessing and enhance your life tenfold.

Author Bio: Juhlin Youlien writes about Paradise Valley AZ homes for sale, Fountain Hills AZ homes for sale, Gilbert AZ homes for sale and Scottsdale golf properties.

Category: Real Estate
Keywords: homes for sale, real estate, buying a home, selling a home, loan, mortgage, foreclosurehomes for sal