How's your financial health?

Before clicking through pages of online listings or falling in love with your dream home, do a serious audit of your finances. You need to be prepared for both the purchase and the ongoing expenses of a home. The outcome of this audit will tell you whether you're ready to take this big step, or if you need to do more to prepare. Follow these steps: My Florida Home Buyers.

Look at your savings. Don't even consider buying a home before you have an emergency savings account with three to six months of living expenses. When you buy a home, there will be considerable upfront costs including the down payment and closing costs. You need money put away not only for those costs but also for your emergency fund. Lenders will require it.

One of the biggest challenges is keeping your savings in an accessible, relatively safe vehicle that still provides a return so you're keeping up with inflation.

If you have one to three years to realize your goal, a certificate of deposit may be a good choice. It’s not going to make you rich, but you aren’t going to lose money either (unless you get hit with a penalty for cashing out early). The same idea can be applied to purchasing a short-term bond or fixed income portfolio that will give you some growth, but also protect you from the tumultuous nature of stock markets. If you have six months to a year, keep the money liquid. A high-yield savings account could be the best option. Make sure it is FDIC insured (most banks are) so that if the bank goes under you will still have access to your money up to $250,000. Review your spending. You need to know exactly how much you're spending every month—and where it's going. This calculation will tell you how much you can allocate to a mortgage payment. Make sure you account for everything—utilities, food, car maintenance and payments, student debt, clothing, kids' activities, entertainment, retirement savings, regular savings, and any miscellaneous items.

Check your credit. Generally, to qualify for a home loan, you'll need good credit, a history of paying your bills on time, and a maximum debt-to-income (DTI) ratio of 43%.2 Lenders these days generally prefer to limit housing expenses (principal, interest, taxes, and homeowners insurance) to about 30% of the borrowers' monthly gross income, though this figure can vary widely depending on the local real estate market.

Address:31120 Deal Dr Sorrento, Florida 32776 Post code:32776 Country: USA Phone Number: (352) 519-4512 Google Map URL: https://goo.gl/maps/BQGNVgpdb3544iSK8