Though, having a home of one's own is often considered, a major component of the so - called, American Dream, wouldn't it make sense kingdom valley, to properly plan to make sure that this doesn't turn into something of a nightmare? Over the past 15 years of working as a real Estate licensed salesperson in New York, the State of New York, I have come up with what I frequently, refer to as the RICH strategies for moving with caution, when it comes to of purchasing a home. With that in mind this article will try to briefly, think about, examine, review and review five steps, for properly, effectively, wisely, being prepared for this purchase, and executing the process accordingly.

1. Create/accumulate sufficient funds, for a variety of requirements and necessities:It's smart to proceed with a plan as much as you can from the beginning. Prior to you start searching for a house, begin saving money in a systematic manner. Don't forget that you will not be able to pay to cover the down payment (often but not always 20%) as well as money for any other closing costs, such as but not restricted to, pre-paid real-estate taxes utilities, real estate taxes, and other such items that are escrow-related. In addition, most lending institutions will require a demonstration of fundsequivalent to several months, for mortgage repayments.

2. Request a copy the Credit Report (if you are married to someone else, get both):You are entitled every year to request a duplicate of the Credit Report, from one of the leading credit organizationsand companies. Review this document carefully, and rectify any mistakes. If your rating is not at the level that a lending institution may seek start taking stepsto increase and improve your rating, earlier rather than later!

3. Pay-down other debt:Lending institutions use formulas that determine the eligibility of a borrower to be eligible for funds. These generally are based on, one's percentage of income to debt. Thus, it is important to pay-down the other debts prior to beginning the process!

4. Don't add any other debt:Avoid acquiring any more debt, regardless of how practical, and/or appealing, it might seemat the time. Avoid falling into the trap, of, accepting new store charge accounts for the reason that it could damage your credit and make it difficult to obtain an mortgage!

5. Search for homes within your means:Avoid the trap, of becoming house wealthy and trying to buy a house above your financial means! Know, how much, you can afford, safely, and comfortably so that you can make your selection wiselyand remain content!