Develop a budget for your Home in Arlington.
Don’t just dream of owning a home in Arlington, go ahead and own it! Start preparing your budget as early as now! You can start by using receipts to creat a budget that reflects your actual spending habits over the last several months. This ensures that you are able to factor in unexpected expenses along with more predictable costs such as utility bills and groceries. With this method, you’ll probably be able to spot some ways to save. Whether it’s cutting out on that morning trip to Starbucks or eating dinner at home more often, your dream of owning a home in Arlington will be a step closer to being a reality.
Reduce your debt.
For you to own a home in Arlington, you will have to reduce your debt. Generally, lenders will look for a debt load of no more than 36 percent of your income. This figure will include your mortgage, which typically ranges between 25 and 28 percent of your net household income. So, if you are going to get that mortgage for your Arlington home, you will need to get monthly payments on the rest of your installment debts, such as car loans, student loans, and revolving balances on credit cards — down to at least 8 to 10 percent of your net monthly income.
Increase your income.
This is the perfect time to ask for that raise! But, if that’s not an option, you may need to consider taking on a second job or maybe starting a side business that will get your income at a level high enough to qualify for your dream home in Arlington.
Start saving for a down payment on your home in Arlington.
Start putting away some designated amount of money every month without fail. Although you can still get a mortgage with 5 percent down or less, you will usually get a better rate if you put down a larger percentage of the total purchase of your home in Arlington. Aim at getting a 20 percent down payment.
Don’t resign from your job yet!
Don’t be too quick to write that resignation letter! While you are not required to work in the same place for ages in order to qualify for a home loan, having a job for less than two years may mean you will have to pay higher interest rates for your Arlington home.
Establish a good credit history.
In order to buy a home in Arlington, your credit history has to be in check. Make sure that your credit card payments are made before the due date. Do the same for all your other bills. Ensure that you pay off all balances as soon as possible.
Decide what kind of mortgage you can afford.
Generally, you will want to look for homes in Arlington that are valued between two and three times your gross income. With the help of a financing professional, you can determine the size of the loan you are qualified for. Find out the kind of mortgage (30-year or 15-year? Fixed or adjustable rate?) that will be best for you. Also, you will need to gather all the documentation a lender will need to pre-approve you for a loan. This includes W-2s, pay stub copies, account numbers, and copies of two to four months of bank or credit union statements. You may also need your property taxes, insurance, maintenance, utilities, and association fees.
Seek help for the down payment of your home in Arlington.
It doesn’t have to be hard for you to get that down payment for your home in Arlington. You can check with your state and local government to find out if you qualify for the special mortgage or down payment assistance programs. If you have an IRA account, you can use the money you’ve saved to buy your first home in Arlington without paying a penalty for early withdrawal.