Having a roommate in an apartment can be difficult; living in a loft can be anything but spacious. If you’re tired of living in small quarters, maybe it’s time to upgrade to a home. While it’s easier said than done, buying your first home doesn’t have to be impossible. There are plenty of resources online to thumb through in order to help you make a decision, and when you need to insurance your Bergen County house, David G. Sayles Insurance Services has you covered. If you’re feeling overwhelmed by the research, look no further. Check out this buying guide for first-time homebuyers, courtesy of Bankrate.
Always Check Your Credit Score
One of the biggest issues with purchasing a new home is your credit score. If you happen to have a lot of debt, it might be difficult to get a home. Just because you’re always paying bills doesn’t mean you have good credit, especially if you’re not making a dent in your debt. Consolidating credit cards and loans is one of the best things you can do while still searching for a house to buy. Check for any discrepancies on your credit score, such as unpaid bills, and make sure to address them accordingly.
Keep Your Documents Organized
When purchasing a home, you need to make sure you have access to important documents that prove your income level. Long story short, you also need to prove that you pay your taxes. If you can’t prove any of those things, then you can’t purchase a home. Having these documents readily available also helps when getting home insurance. Applying for a mortgage requires certain things such as recent pay stubs, w-2’s from the past couple years, tax returns and bank statements from the last couple months. Pretty much every nook and cranny is going to be examined, so your best bet is to keep everything organized for when that day inevitably comes.
Find Out How Much You Can Afford
One huge question to ask yourself is how much you can afford to spend on a home. First-time homebuyers need to be able to calculate exactly how much money they’re spending so they don’t get into something that they may not be able to afford. By calculating how much you owe according to your income and factoring in a down payment, you should get a good idea of how much you can afford. According to a standard rule for lenders, your housing expenses should consume no more than 28 percent of your entire income. This means that 70 percent of your income needs to be available for other expenses, such as Bergen County house insurance.
About David G. Sayles Insurance Services
At David G. Sayles Insurance Services, we strive to protect the investments of homeowners like you. Our comprehensive policies are customized for you to provide the exact coverage you need. For more information, contact us today at (800) 439-0292.