1. Develop a family budget. Instead of budgeting
what you’d like to spend, use receipts to create a budget for what
you actually spent over the last six months. One advantage of this
approach is that it factors in unexpected expenses such as car
repairs, illnesses, etc., as well as predictable costs such as rent.
2. Reduce your debt. Generally speaking, lenders
look for a total debt load of no more than 36 percent of income.
Since this figure includes your mortgage, which typically ranges
between 25 and 28 percent of income, you need to get the rest of
installment debt—car loans, student loans, revolving balances on
credit cards—down to a between 8 and 10 percent of your total
income.
you spend for one month. You’ll probably
see some great ways to save.
4. Increase your income. It may be necessary to
take on a second, part-time job to get your income at a high enough
level to qualify for the home you want
5. Save for a down payment. Although it’s possible
to get a mortgage with only 5 percent down—or even less in some
cases—you can usually get a better rate and a lower overall cost if
you put down more. Shoot for saving a 20-percent down payment.
6. Create a house fund. Don’t just plan on saving
whatever’s left toward a down payment. Instead decide on a certain
amount a month you want to save, then put it away as you pay your
monthly bills.
7. Keep your job. While you don’t need to be in
the same job forever to qualify, having a job for less than two
years may mean you have to pay a higher interest rate.
8. Establish a good credit history. Get a credit
card and make payments by the due date. Do the same for all your
other bills. pay of the entire balance promptly.
