For instance, something as simple as creating a budget that earmarks your spending for a year
can help you know what you can afford - while signing up to have a portion of your paycheck
automatically deposited in your savings account can help you be certain you'll have cash for the
down payment.
Try these additional tips.
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Clean up credit. Make sure none of your bills is past due for at least 12 months
before applying for a home loan. Also, check your credit report and clear up any errors.
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Obtain a written preapproval from a reputable mortgage lender before you start house
hunting. Doing so helps you know in advance how much home you can afford.
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Decide on the down payment. Today's home loans often only require 3 or 5 percent
of the home's selling price. Explore your options.
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Find a real estate agent - whether through a referral from friends or family, or
by contacting your local real estate professional association.