House is a dream of every person living in this world. People love to own their shelter even it has been very difficult to bear such a budget these days. What if you can adjust your system settings to reach the position in buying the home you need. Even real estate prices are skyrocketing these days, your management expertise can make you a homeowner real quick with some couple of smart works.

A vehicle, A lovely family, and most importantly a place to live are among the highest fantasies within the ages of 20 – 30. Most people are dreaming to fulfill the space of a home, which allows us to think dreaming will not reach our goal in reality. Work hard, follow some tips, and then you will see a beautiful house at the end of the destination with a name board mentioning your name hanging in front.

Apart from being a house owner, your identity may introduce you as an investor. Real estate investing has never looked away when it comes to the matter of profits. A beginner should always follow the path with some tips to reach the ultimate goal step by step. However basic steps should follow in order to make any goal successful.

What to consider before buying a house.

Debt – To – Income Ratio.

Debt - To - Income Ratio.

Debt – To – Income Ratio is a calculation proceeded by the lender party before the mortgage approval. Basically Debt -To – Income ratio calculates to check your ability to pay the mortgage. Mortgage lenders always check on your ability to pay the debt because their survival depends on debt collection.

First, you should clear your ideas about Debt – To – Income ratio, and thereby you can make the steps easier to approve your mortgage file. The standard ratio used by Federal Housing Administration (FHA) is 43%, So the calculation gives an idea about the borrower’s ability to pay the loan each month.

If we go forward with an example, think your monthly gross income is $4500. So $4500 multiply by 0.43 means it gives us $1935 which is the total volume you can afford on your debt payments. Also, you should consider other debts such as credit card payments, car loan payments, and other loan payments as subtractions. So nearly $1400 is the maximum affordable amount on your mortgage. However, we can see that less debt is always good.

Mortgage payment security.

An essential fact to reconsider while having an idea of a new house. Monthly payment security in other words Job security is to be looked over before buying a house. Most of the time your Job is the number one deposit on your debt payments.

So relying on a side hustle should be kept away when it comes to dealing with debt like a mortgage. Try working on a permanent income source that can bring you prosperity forever.

Local Market Analysis.

If you decided to purchase a house in a certain area, that certain area spontaneously becomes the local area because you are going to settle in that specific area. So more attention on this local house market can be more useful. We know the housing market skyrocketing from month to month. The best way is to analyze the graphical variation for about three months prior to going on buying.

The market indicators can diversify with the range of schemes which you are interested in. Most financial experts recommend prior market analysis before going on purchasing.

Mortgage rates.

Mortgage rates.

You know this is more important to be aware of the mortgage rates in order to not to hug a serious loss. As of last year mortgage rates hovered in between 3.9 to 4.9 no less no more. You can keep walking in between to catch the most suitable within. Since there isn’t any fixed-rate, mortgage companies continue their desires based on the facilities they provide. You should think on your own and decide whether more facilities or less debt payment. The choice is yours.

Down Payments.

Down Payments.

FHA provides a lower 3.5% down payment. Thinking of that you might have relief on the down payment. But my recommendation is to try your best in catching a higher volume in down payment. A lower down payment can offer you a high monthly payment. Try to reach at least 20% of your total so you may not receive it to be a higher value. Keep in your mind that some lenders do not provide mortgage facilities if you can’t reach at least 5% or 10% of a minimum down.

Money Saving Tips For Your New House.

01. Stick to a budget plan.

Stick yourself to a budget plan is a smart thing to do if you are in need of a new house. Seasonal or occasional budget plans are a more popular and recognized way of balancing a budget in a special situation. Just like we did in Christmas Budget Plan you can use a budget planner format or else you can use a budget planner app in the task. A separate debt planner is the most suitable format type for this task. Include all your debts in one separate planner format so the same category would be easy to handle with some understanding.

02. Skip a vacation trip.

Going on a trip is all about entertainment. But you should have to skip at least two vocational spends so as to achieve the target of keeping some money for the mortgage use. A vocational trip can cost at least $1500. So if you can skip two trips means it can offer you one and half of your monthly payment. This amount may not affect the down payment much but can affect at least some cents which is good when you pay.

03. Work on a side hustle.

A side hustle is always a good idea if you are In need of money. You can direct this side income to pay your other debts such as car loans or credit card payments while directing your permanent income towards a house mortgage. If you are in need of any ideas for side hustles 20 side hustles to earn money in 2022 can guide you to the destination. If you have any idea of increasing your down payment percentage, it also can be done via a side hustle with an effort of 6 months. So side hustle is always a good idea.

04. Cut down one or two of your bad habits.

Some achievements are worth some sacrifice. Here you can sacrifice some of your bad habits in order to reach the target.

Smoking habit.

Smoking costs $3 – $ 5 per day. More than 75% of smokers badly need to stop addiction and you can take the benefit of the situation here. Think about your house each and every moment so you can lower down your rate of costs.

Night outs and fast foods.

Hence most of the young generation is not involved in smoking most of them have a rapid involvement in fast foods and night outs. So you can sacrifice that habit to a maximum of up to $100 and also your health.

05. Automate your savings.

This is a good option to get started with. Automate facility should process aligned with your account holding bank. First, decide the amount you want to save for your down payment or the amount to be separated in order to pay the monthly debit. Inform your bank to direct the particular amount of money to a separate savings account other than the primary account. If you can direct $ 1500 to the separate account it will be a great hand to your debt payment.



As per the steps and ideas mentioned above you can proceed with your works by buying a new house. Fix the separate value you need as a down payment. If you know the total amount to spend then you can have a rough idea about the monthly payment accordingly with your down payment. Other than this you have to focus your attention on settlement or staying fees which means the amount to be spent when you start living in the new house. So congratulations on your new move and try to manage the tasks one by one so you will find it easy to reach the ultimate goal.


If I tell you more about Salika Wijesinghe, I was a former General Insurance Analyst, a former customer service associate in a telecommunication network, Former customer service executive in a bank. Now I'm really very happy to share my knowledge with each and every one of you. Also, I represent a kind-hearted world community because I love helping people as well as animals. I hope my ideas are helpful, so you would find it easy to step forward in this life journey.

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