How To Save For A House

September 2, 2018 Posted By: growth-rapidly Tag: Buying a house

How to save for a house! For many people, saving to buy a house can be hard. This is because they don’t know how to save money or they’re not willing to limit their spending. This article will provide you with tips for saving for a house.



Determine how much money you need.

Before you decide to save for a house, you need to determine first how much money you’ll need to get started.

Typically, you need to come up with 20 percent of the property’s purchase price as a down payment and borrow the 80 percent from lenders.

In some cases, especially if you’re a first time home buyer, you can come up with way less money down as low as 3.5% thanks through FHA loans, but your interest rate might be higher. And you might be required to pay private mortgage insurance.

If you are interested in comparing the best mortgage rates through LendingTree click here. It’s completely free.

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In addition to the down payment, closing costs and fees are also factors to consider in determining how much money you need to save for a house.

For example, let’s say you’re looking to buy a house for $250,000. You will need to come up with 20 percent of that price, i.e. $50,000, as the down payment. And 5 percent for closing costs, i.e., $12,500.

So in order to buy a house for $250,000, you will need to come up with $62,000.

To learn how much house you can afford, use LendingTree for the best mortgage loan rates and quotes for free. Here are some tips on how to save for a house:

Click here to compare mortgage rates through LendingTree. It’s completely FREE.

1. Increase your income.

If your monthly paycheck is not enough to save money because of monthly bills, debts, and personal expenses, then the best way to save for $62,000 is to boost your income. There are several ways to boost your income.

One is to work more by working over time at work. Another way is to have a side hustle to make extra cash on the side. A third way to boost your income is to take a part-time job.

Tip: If you want to make extra cash, I suggest that you take surveys online. I recommend, Pinecone Research (earn minimum $3 per survey), Swagbucks ($5 sign up bonus + get paid to take surveys), InboxDollars ($5 sign up bonus + get paid to take surveys), Ebates (earn up to $40 cash back), YouGov US Males ($2 bonus + $8 – $10 per hour), MySurvey ($2 sign up bonus + 5 per survey). See this blog post for a complete list. 

2. Reduce your spending.

One of the best ways to save money fast for a house is to reduce your spending. You can substantially increase your savings by living below your means.

To do so, figure out how much you spend a month on food, clothing, grooming, transportation and entertainment. See where you can cut back a little. See if there is a much cheaper alternative. Can you eat out less? Can you take public transportation rather driving your car?

Are there things that you pay for on a monthly basis that you can cut? For example, cable TV, magazine subscriptions, a gym membership that you barely use. Indeed, there are several ways to reduce your spending.

3. Pay off your debt. 

Paying off debt, such as credit card debts, is another way to save for a house. Credit card debts are high interest debts. Once you get rid of these debts, you will have more money left to save. Also, paying down your credit card debts helps your credit score.

In conclusion, if you’re in the market to buy a house, you need to come up with the down payment including the closing fee. This can be a big chunk of money that you may not have. So it’s important to follow the above tips to save money for your dream home.

Get pre-approved for with a mortgage lender to figure out how much house you can afford.

Related:

Working With The Right Financial Advisor.

You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is paying off debt, investing, buying a house, planning for retirement, saving, etc). Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.

Source: growthrapidly.com

7 Signs You’re Ready to Buy a House

For most of you, it is the American dream to own your home. But buying a home is a major financial decision, and therefore it is not something to be taken lightly.

From coming up with a sizable down payment to getting qualified for a low rate mortgage, buying a home has its challenges. Here are 8 signs that you’re ready to buy a house:

Buying a house? Estimate how much you may be able to borrow. Get pre-qualified.

 1. You have a good credit score.

If you have a good credit score, say 730 or above, congratulations! It is one of the signs that you’re ready to buy a house.

A good credit score of 730 means that not only will you able to get qualified for mortgage loan, it also means you’ll get qualified for a better interest rate.

And being able to get a better interest rate means that you will have lower monthly mortgage payments. This, in turn, means that you’ll save thousands of dollars on interests.

Click here to check your credit score with CreditSesame. It’s completely FREE.

2. You have eliminated most if not all your debt.

If you’re no longer paying off outstanding credit card debts or car loans, that extra cash can be used toward expenses that are associated with home ownership, such as property tax, insurance, repairs, maintenance, etc.

Related Resources

  • Get Pre-qualified for a Mortgage Online Now
  • Compare Mortgage Rates All in One Place
  • Check Your Credit Score For Free

3. You have a stable job.

If you have been employed for the same employer for at least 2 years, that’s a good sign you’re ready to buy a house.

The longer you are with an employer or the number of years you have been as a business owner, the more likely your job will be seen as stable.

In fact, lenders, before they extend you a mortgage loan, looks at the length of your employment to determine whether you’re able to make the payments. 

Click here to compare mortgage rates through LendingTree. It’s completely FREE.

4.  You have a good emergency fund.

On top of your mortgage payments and regular monthly expenses, there are a lot of ongoing costs you’ll have to manage when owning a home.

They include home insurance, property tax, potential renovation costs, etc…

You also have to consider life unexpected expenses, such as car repairs, medical bills, or you need to get a new washing machine. 

An emergency fund is the amount of money you have set aside to help cover the cost of these unexpected and urgent expenses.

The rule of thumb is to have at least 6 months of living expenses in that fund. So if you have that amount of cash in that fund, it gives you piece of mind that you are ready to buy a house.

If you are interested in comparing the best mortgage rates through LendingTree click here. It’s completely free.

5. You can put at least 10 percent down payment.

If you have at least 10 percent down payment for a house saved, besides your regular savings and emergency fund, then buying a home is more of a reality than a dream.

If you have 20 percent down payment saved up, that’s even better.

With a 20% down payment, not only will you avoid paying mortgage insurance, you will also have a lower interest rate and lower monthly mortgage payment. That also means you will be able to save up a lot in interests.

Read: How to Save For a Down Payment Fast

6. You don’t plan on moving in the next few years.

Buying a house is a huge, long term investment. People don’t typically buy a house in the hope to move out within 2 or 3 years unless of course it’s an investment property.

That’s what renting is for. So if you see yourself staying in the home for at least five years, then buying might be for you.

At least by staying longer, you’re able to make or regain what you paid in transaction costs and you can actually make a profit when and if you decide to sell.

7. You have done your research.

Buying a home is a major life decision that takes into consideration careful planning, budgeting and research. If you’ve done your research thoroughly, you might be ready to buy a house.

Your research might include finding out how much house you can afford and how to find the best mortgage rates.

Your might have also considered the costs in buying a home such as down payment, closing costs, inspection costs, legal fees, etc.

If you have done all of these, then it means that you know what you want and you’re comfortable with the process. 

In conclusion, if you decide to buy, you’ll want to check out LendingTree to figure out how much home you can afford.

Don’t miss: 5 Signs You’re Not Ready to Buy a Home.

Related: Apply for a Mortgage Loan Today

Work With The Right Financial Advisor.

You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is paying off debt, investing, buying a house, planning for retirement, saving, etc). Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.

Related Resources

  • Get Pre-qualified for a Mortgage Online Now
  • Compare Mortgage Rates All in One Place
  • Check Your Credit Score For Free

Source: growthrapidly.com

3 Simple Mortgage Tricks Can Save You Over $5000/year

July 8, 2019 Posted By: growth-rapidly Tag: Buying a house

If you’re ready to refinance your mortgage loan, and speed up the process of being debt free, then you’ve come to the right place. The following mortgage tricks can save you several thousands of dollars.

As a homeowner, it’s probably been a while since you last checked and compared home loan rates to see if if your current loan rate is still a good deal. If you haven’t done so in a while, then you’re making a big mistake. Indeed, this mistake could be costing you a lot of money in interest every year, given that there are relatively low home loan rates out there.

3 Simple Mortgage Tricks Can Save You Over $5000/year:

These 3 simple mortgage tricks can help you get rid of your debt sooner, save on interest, and allow you to live in a house that is actually and really your own without worrying about monthly mortgage payment ever again. Who wouldn’t want that!?


LendingTree: A Better Way to Find A Mortgage

LendingTree.com is making getting a mortgage loan simpler, faster, and more accessible. Compare the best mortgage rates from multiple mortgage lenders all in one place and at the same time. >> (opens in a new tab)”>LEARN MORE ON LENDINGTREE.COM >>>

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1. Compare mortgage rates.

Even if you think your home loan was a pretty good deal, you still need to compare home loans to see what rates are available.

LendingTree mortgage loans comparison can help you find the best mortgage loan rates for your needs and situation. With LendingTree, you can compare several mortgage lenders for home loan rates and fees side by side at one place and at the same time. It’s easy, fast, and free.

Head over to LendingTree now to compare low rate home loans.

2. Establish your credit score.

Before you can get the best home loan, you will need to establish and maintain a good credit score. In fact, a good credit score is one of the most important factors to determine whether you will get a good rate.

The first step then is to get a copy of your credit report for free online. Check for any mistakes and address them immediately. And if you find any red flags, contact the three credit bureaus (Equifax, Transunion, Experian). If your credit score is below 730, take steps to raise it.

One of the ways to raise your credit score is to pay your bill on time. In fact, payment history accounts for 35% of your total credit score. Another way to improve your credit score is keep your credit card utilization rate below 30 percent of your total balance. For more information, check out: How To Raise Your Credit Score To 850.

3. Refinance your mortgage.

After comparing home loans, you need to refinance it with a lender. Refinancing your loan simply means that you take a new loan to replace the one you currently have, in the hope that you get a lower interest rate, so you can same money on interest. Or that you get a shorter term on your mortgage.

Refinancing can save you over $5000 a year in interest and fees.

Want to compare home loans? Check out the latest mortgage rates through LendingTree. It’s completely FREE.

Not only that, it will allow you to pay your mortgage sooner. Let’s take an example. Let’s say you have a 30 year, $400,000 mortgage with an interest rate of 4.04%. If you were to refinance the loan with a rate of 3.34%, you’d be able to pay off the loan 4 years earlier.

So, if you’d like to pay off your loan sooner, check out some current rates now.

Related Articles

3 Signs You’re Not Ready To Refinance Your 30-year Mortgage

How To Pay Off Your Mortgage Early

Related Resources

Not All Mortgage Lenders Are Created Equally

When it comes to getting a mortgage, rates and fees vary. LendingTree allows you to view and compare multiple mortgage rates from multiple mortgage lenders all in one place and at the same time, so you can choose the best rates for your needs. LendingTree makes getting a loan faster, simpler, and better. >> (opens in a new tab)”>Get started today >>>

Source: growthrapidly.com

Existing Chase ‘Pay Yourself Back’ Categories Appear Slated to End on April 30

A while back, Chase extended the Pay Yourself Back categories through April 30th. It wasn’t known whether it would continue getting extended or not, but early indications are that – indeed – after April 30th the existing categories will no longer be valid:

Reader Peter shares a screenshot from within his Chase login (taken on February 26th) which shows all eligible PYB transactions from February to have a 62 day expiration, meaning that the transactions can be redeemed PYB through April 30th. That’s less than the typical 90-day allotment, presumably because after April 30th these categories will not be eligible.

Last time around, people were wondering why Chase showed the full 90 days, despite the entire PYB benefit expiring in less than 90 days; then, Chase extended the benefit and it all made sense. This time, they took the pains of changing the number of days left which would seem to indicate that the existing PYB categories will not be extended beyond April 30th.

Most likely there will be new eligible categories beginning May, but we don’t know what they’ll be – it’s worth cashing out now if you find the Grocery and Dining categories easily usable. Grocery also works out now with the 3x Sapphire Reserve grocery multiplier.

Source: doctorofcredit.com

How To Buy A Home With A Low Credit Score

July 23, 2019 Posted By: growth-rapidly Tag: Buying a house

Life is full of surprises. Just when you think you have everything figured out, a roadblock, like losing your job, presents itself. And a few months later you realize that you have missed on a few credit card payments.

When applying for a mortgage loan, mortgage lenders not only assess your ability to repay the loan, but they also review your credit report.

Click here to find the best mortgage lenders for low or bad credit score.

And if your credit report does not reveal a good credit score, then getting a mortgage loan to finance your property can be quite difficult. If you’ve found yourself in this situation, do not despair yet. There are a few things you can do to overcome a low credit score. Here are a few tips to get started:

1. Meet face-to-face with a lender and be transparent

When you have a low credit score and you have run out of time to fix it, one of your best options is to meet face-to-face with a lender and explain your situation.

Indeed, there are some lenders out there who are inclined to offer you a home loan despite bad credit after taking into consideration your unique circumstances.


LendingTree: A Better Way to Find A Mortgage

LendingTree.com is making getting a mortgage loan simpler, faster, and more accessible. Compare the best mortgage rates from multiple mortgage lenders all in one place and at the same time. LEARN MORE ON LENDINGTREE.COM >>>


Related Resources

When a lender runs your credit through a computer, you risk to be automatically rejected if you don’t meet the computer’s prerequisites.

But when you sit down with a lender and explain your poor credit, the lenders will be able to reach a deeper understanding on whether you are able to repay the loan.

So if you have a bad credit score, it’s best to be transparent and upfront about it.

2. Show that you have a full time, stable job.

Although your credit score is an essential lending requirement, it’s not the only thing a lender looks at.

Being able to show that you have a full time, stable job is another way to increase your chance of getting a loan even if you have a low credit score.

A good income will show that you’re able to make the payments on the loan despite a bad credit score.

Related: Apply for a Mortgage Loan Today

3. Have a bigger down payment.

A bigger down payment, say 20% + of the home purchase price, makes it more likely to get approved for a loan despite having a low credit score.

Furthermore, and more importantly, putting at least 20% down will allow you to avoid paying private mortgage insurance (“PMI”), which is an additional monthly payment you make on top of your monthly mortgage payments.

A PMI is a way to assure the lenders, that if you, as a borrower, default on the loan, the bank will be covered by mortgage insurance.


Feeling Overwhelmed With Your Finances?, You have options and there are steps you can take yourself. But if you feel you need a bit more guidance, simply speak with a financial advisor. SmartAsset’s free tool matches you with fiduciary advisors in your area in 5 minutes. If you are ready to meet your goals, get started with Smart Asset today.


4. Consider applying for an FHA loan.

Since you have a low credit score, you may assume that you have little to zero chance with a lender. But did you know that you still can get approved for an FHA loan?

Depending on the amount of money you’re seeking as there are limits, an FHA loan may be the right loan for you.

An FHA loan is loan that’s insured by the Federal Housing Administration. FHA Loans are very popular among first time home buyers because they require a much lower down payment (3.5%) and a very low credit score (580).

So if you have a low credit score of 580 and can meet the other FHA loan requirements, you should be able to a home loan.

Click here to compare FHA loan rates

For more information see: FHA Loan Requirements – Guidelines & Limits.

5. Avoid applying for more credit prior to loan approval.

A low credit score is itself not a good sign. But the more debt you’re applying to prior to seeking loan approval can significantly damage your file.

You see, every time you’re applying for a new credit, it can be a credit card, a car loan or a personal loan, it goes to your credit report. And the more inquiries you have on your credit report raises a red flag that you’re experiencing financial difficulty.

These are just a few tips to consider when shopping for a home loan with a low credit score.

Tips to raise your credit score:

Although you still can get a loan despite having a low credit score, it’s not always the best decision. For one, it comes with higher interest rates.

So if you’re not in a rush, your best bet is to put buying a house on hold and work on improving your credit score. Here are a few tips to improve your credit score. For more information, read: How To Raise Your Credit Score To 850.

Always pay your bills on time and in full. Payment history accounts for 35% of your total credit score. So whether it’s a credit card or a phone bill, stay on top of these payments

Keep your credit card utilization rate below 30 percent if your total balance.

Be stable. One thing that may make you a low risk borrower before a lender’s eyes is having a stable job. Lenders love stability. So if you have been with your current job for a while, that will work in your favor.

Get a credit card if you don’t have one. You may think having a new credit card may hurt you, but it can actually help you if you’re able to manage it properly.

Click here to compare mortgage rates through LendingTree. It’s completely FREE

Related Articles:

5 Signs You’re Not Ready To Buy A House

Top 6 Home Buying Risks To Avoid

The Biggest Mistakes Millennials Make When Buying A House

How Much House Can I afford

Related Articles

Not All Mortgage Lenders Are Created Equally

When it comes to getting a mortgage, rates and fees vary. LendingTree allows you to view and compare multiple mortgage rates from multiple mortgage lenders all in one place and at the same time, so you can choose the best rates for your needs. LendingTree makes getting a loan faster, simpler, and better. Get started today >>>

Source: growthrapidly.com

Buying A Foreclosed Home in 10 Simple Steps.

Buying a foreclosed home is probably one of the best financial decisions you can make as a first time home buyer (although it’s not without risk).

In fact, it’s one of the best ways to make a good return on your investment. That is because foreclosed homes usually have more value than a traditional purchase.

However, the process of buying a foreclosed home can be risky and is different than a traditional purchase.

Plus, it can be very competitive as other buyers (sometimes real estate investors with a lot of cash) are probably looking for the same opportunity.

If you are interested in comparing the best mortgage rates through LendingTree click here. It’s completely free

So, if you’re thinking of buying a foreclosed home soon, do your due diligence and act fast. And use the following steps below as a guideline.

What is a foreclosure?

Before we learn how to buy a foreclosed home, we need to define what a foreclosure is.

Simply stated, a foreclosure is a property where the owner has defaulted on his or her loan payments. It can be other loan requirements, such as not having proper insurance coverage for the property. It can also be keeping the property in a bad condition.


LendingTree: A Better Way to Find A Mortgage

LendingTree.com is making getting a mortgage loan simpler, faster, and more accessible. Compare the best mortgage rates from multiple mortgage lenders all in one place and at the same time. LEARN MORE ON LENDINGTREE.COM >>>


The lender (a bank, credit union, etc…) in the hope of getting some of their money back, takes legal possession of the property. The lender, in turn, will try to sell the house.

Foreclosed homes make buying a house a great opportunity for home buyers.

Why? The lender’s goal is to sell the foreclosed home as fast as possible. Holding on to a foreclosed, empty home costs the lender money.

So they are more concerned about selling it as quickly as possible rather than holding on to it for the highest price.

If you’re considering of buying a foreclosed home, follow these steps below.

Buying a foreclosed home in 10 Simple Steps:

If you’re a motivated buyer willing to buy a house in foreclosure, knowing these steps is important in order to buy a house at below market. It’s even more important if you’re buying a foreclosed home at auction.

Here are the 5 steps you need to take when considering buying a foreclosed home.

1. Get your finance in order

Remember you’re buying a foreclosed home from a bank that wants to get rid of the property as fast as they can. So time if of the essence.

Time is of the essence, especially if you’re buying the foreclosed home at an auction. Once your hand goes up, and you win the bid, be prepared to pay the down payment and sign the contract. Generally with buying a foreclosed home at an auction, there’s no cooling off period.

So organize your finance before you start looking.

That means knowing how much you can afford to borrow, making sure your credit score is in good shape, and having your down payment is ready, etc…

2. Secure a pre-approval letter from a lender.

Buying a regular house requires you to take out a mortgage loan to finance it (unless, of course, you have enough cash to buy the whole property).

Buying a foreclosed home is no different. The same concept applies.

Related: Apply for a Mortgage Loan Today

So before you start looking for a foreclosed home, make sure you can secure a mortgage. You can start doing that by getting pre-approved.

The process is not complicated, all you need is to find mortgage lenders. Then compile all necessary documents including your bank statements, pay stubs, or other forms of income.

Your credit score is one of the most important things, mortgage lenders look at to pre-approve you. So make sure your credit score is good.

Having a pre-approval letter can signal to sellers that you’re a serious buyer. It can also signal that you will be able to secure a loan.

3. Work with a real estate agent

A real estate agent will not only help you find current foreclosed homes listings, but can also inform you of those properties that will be listed soon.

This way, you are able to go through all of the foreclosed homes that are within your mortgage pre-approval range.

There are other reasons working with a real estate agent is important when buying a foreclosed home.

One is that, they may have experience helping other people finding foreclosed homes. Second, with that experience, they are able to tell you whether a foreclosed home will make a good buy or not.

4. Start your search: where to find foreclosed homes?

Finding a home in foreclosure can be very easy. Generally, your real estate agent can give you a list of them. You can easily find them listed on popular sites like Zillow, Redfin or Trulia.

Better yet, you can drive through any neighborhood, and you will likely see signs that say “bank owned”

Are you interested of buying a foreclosed home? Check out mortgage rates right now.

Additional steps in buying a foreclosed home

If you are in a hurry to buying a foreclosed home, these three steps above should suffice. But if you want to make sure your home buying process goes as smoothly as possible with no real surprises later on, continue on the following steps.

5. Compare prices

Before buying a foreclosed home, it’s always a good idea to compare prices of recent sales of similar foreclosed properties.

Again, your real estate agent can help you with that as well.

6. Get the right home loan

The number of home loans available to you can be mind-boggling.

However, LendingTree’s online platform has over 1500 home loans and can match you up to 5 mortgage lenders so you can choose the best mortgage rate.

So you should always do your due diligence to make sure you find a mortgage specific to your needs.

Not all loans are made equal. Rates and fees can vary from one mortgage lender to another.

So don’t make the mistake at looking at one lender only.

Use a free comparison website such as LendingTree to compare home loans side by side.

7. Inspect the property

Once you find the home and make an offer, make sure you hire an inspector to do a thorough inspection to determine the condition of the property and the overall cost of any repairs and renovations the property might need.

So even if you’re likely going to save money by buying a foreclosed home at below market, don’t try to save money by foregoing a physical inspection on the property.

No matter what the circumstances, always do an inspection.

8. Find a good lawyer

A lawyer should do all the legal work involved in buying a foreclosed home.

They will do a title search to see if the property has any liens, etc.

A lawyer can also guide your through the contract negotiation process.

9. Consider repair costs

Foreclosed homes are offered “as is.” So, you should expect some damage done to the house. Perhaps the previous owner was upset about losing their home and did real damage to the property.

And if they did not have the money to make their mortgage payments, it’s safe to assume they did not have any money to maintain the house.

It’s a good idea to also consider repair or renovation costs when buying a foreclosed home.

10. Consider other costs

In addition to the down payment and repair costs, closing costs, there are other costs involved in buying a foreclosed home. They include moving costs, maintenance costs, etc..

So make sure you consider these costs when making your budget.

In conclusion, property in foreclosures are properties where previous owners have failed to meet their loan requirements and the lenders take legal possession of the property. Although they can be risky, they are usually a better value than a traditional purchase.

So, if you’re a potential home buyer willing to do the due diligence to find rare opportunities, you can be significantly rewarded.

Click here to compare mortgage rates through LendingTree. It’s completely FREE.

Related:

Related Resources

Not All Mortgage Lenders Are Created Equally

When it comes to getting a mortgage, rates and fees vary. LendingTree allows you to view and compare multiple mortgage rates from multiple mortgage lenders all in one place and at the same time, so you can choose the best rates for your needs. LendingTree makes getting a loan faster, simpler, and better. Get started today >>>

Source: growthrapidly.com

4 Mistakes Millennials Make When Buying a House

June 8, 2019 Posted By: growth-rapidly Tag: Buying a house

Many millennials start the home buying process without a real understanding of what it takes be a homeowner.

In fact many of them don’t even know the many upfront costs when buying a house — including coming up with a down payment, moving costs, closing costs, renovating costs, and so many others.

They think that if they have a sizable down payment and a stable job, the hard yards are over. Well, not quite…

Wondering how these mistakes can affect your overall financial plan? Talk to a local financial advisor.

That lack of knowledge can lead them to make costly mistakes, including paying thousands of dollars in loan interests, defaulting on their home loan, or going bankrupt. Here are some of the biggest mistakes millennials make when it comes to buying a house — and what can be done instead.

Check out: 5 Signs You’re Not Ready to Buy a House.

1. Not understanding the importance of a good credit score.

One of the most important things a mortgage lender looks at when deciding to pre-qualify or qualify you for a mortgage loan is your credit score.

Yet, many millennials don’t know the importance of maintaining a good credit score. Lacking that fundamental knowledge could cost them a lot. One is that you will have a hard to get qualified for a loan.

Second, even if a mortgage lender offers you a mortgage loan, you will likely get a high mortgage rate. A high mortgage rate can cost you thousands of dollars in interest – money that you could contribute towards your retirement savings.

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To avoid this mistakes when buying a house, millennials should first figure out their credit scores through a free monitoring service like MyFreeScoreNow. A good credit score is around 730.

Once you have an idea of what your credit score is through your credit report, take steps to improve it. One way to raise your credit score is not to max out your credit limit.

Maxing out your credit cards can hurt your credit score significantly. So keep your credit utilization rate under 30 percent.

Another way to improve your credit score is to pay your bills on time. Payment history accounts for 35% of your overall credit score. So it’s very important to pay your bills promptly.

Check out: How To Raise Your Credit Score to 850.

2. Not understanding how much down payment is enough.

A down payment on a house is the single most important factor when it comes to buying a house. Unless you are so wealthy that you can buy a house with outright cash, you will need to come up with a down payment.

The recommended down payment is 20% of the home purchase price. But many first time home buyers can be qualified for a FHA loan, where the down payment is 3.5%.


Feeling Overwhelmed With Your Finances?, You have options and there are steps you can take yourself. But if you feel you need a bit more guidance, simply speak with a financial advisor. SmartAsset’s free tool matches you with fiduciary advisors in your area in 5 minutes. If you are ready to meet your goals, get started with Smart Asset today.


However, the disadvantage of putting less than 20% is that you will have to pay Private Mortgage Insurance (PMI). A PMI is extra fee added to your monthly mortgage payment.

Another disadvantage is that it will take you longer to pay off your mortgage. And your monthly mortgage payments will be much more.

One way to not have to worry about a PMI is to save for a 20% down payment before starting the home buying process. Saving for a down payment should not be that hard if you have a savings strategy in place.

See: What is a Typical Down Payment on a House?

Taking out a mortgage loan to purchase a house is the most expensive financial decisions you can ever make in your life. So it’s important to have the best mortgage rates possible so you don’t end up paying thousands of dollars in interest over the life of the loan.

Yet, most millennials only speak with one lender when buying a home. That is a big mistake. When you speak with one lender, you don’t know what other mortgage rates are available to you. A good mortgage rate means less interests. So not speaking with multiple lenders is one of the mistakes to avoid when buying a house.

4. Not knowing other upfront costs associated with buying a house

You might think that just because you’ve found a home and you have been approved for a loan, that your hard work is over. Well, not quite. In addition to coming up with a down payment, there are several other upfront costs when buying a house.

There are inspection costs. Before you buy a house, it’s always a good idea to inspect the house for defects. In fact, it is mandatory. Lenders will simply not offer you a loan unless they have seen an inspection report.

There are loan application fees. Some lenders may charge you a fee for applying for a loan. This fee typically covers tings like credit check for your credit score or appraisal.

There are repair costs. Unless your house is perfect from the very first time you occupy it, you will need to do some repair. Depending on the condition of the house, repair or renovating costs can be quite significant.

There are moving costs. Depending on how far you’re moving and/or how much stuff you have, you may be up for some moving costs.

So avoid these mistakes when buying a house, and your home-buying experience should go as smoothly as possible.

10 First Time Home Buyer Mistakes to Avoid

How Much House Can I afford

5 Signs You’re Better Off Renting

7 Signs You’re Ready to Buy a House

How to Save for a House


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Source: growthrapidly.com