Buying a home is probably the single largest investment most people will make in a lifetime. By preparing yourself and your finances for a home purchase, you can ensure a smooth home-buying process.Start by checking your creditTo have an opportunity to get the best possible mortgage, make sure your credit history is clean and accurate. Start checking your credit profile at least a few months before the house hunt.Make sure the information is correct and dispute any problems you discover.For an understanding of your credit history, check your credit profile.Figure out how much home you can affordThe rule of thumb is that you can afford a residence that runs about two-and-one-half times your annual salary. Most banks insist on the following:Your monthly housing costs (including mortgage principal and interest, property taxes, homeowner’s insurance and private mortgage insurance) should equal no more than 28 percent of your gross monthly income.That sum (plus your minimum monthly payment on any long-term debts) should equal no more than 36 percent of your gross income.Understand the Elements of Home FinancingDown Payment - This is the up-front money you pay toward the home. The more money that you can allocate to the down payment, the […]

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