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Financing Guide by the Allman Company

The process of finding the perfect place to call your home may not always be easy, but it doesn’t have to be difficult either. Here are a few things about financing that you want to take into consideration when you finally decide to buy your dream space.

1. Make up your mind.
First things first, decide if you’re going to rent or buy by simply answering these questions: “Where do you see yourself in five years? And in 10 years?”

If you know you’re going to be moving around within the next five years, most of the time it’s going to make more financial sense to rent. If you see yourself staying put for longer than that, then you probably want to buy.

If you’re in the market to buy, remember to factor in the costs involved in maintaining the property. How much will the basic upkeep of your home cost?

2. Do the math.
How much should your new house cost you? The question is, what can you afford? It’s always prudent to live within your means.

If you’re planning to buy, your mortgage and the cost of running your home (taxes, maintenance, etc.) should not exceed 28 percent of what you make each month.

3. Improve your credit report.
Securing a loan depends on how fiscally responsible you are, which is going to be reflected by your credit rating. If your credit is less than pristine, there are things you can do that will help you get back to good standing. Remember, this process takes time (from six months to a year), so beware of quick fixes. In the meantime, start by paying your bills on time, all the time, and never max out your card.

4. Do your homework.
What’s important to you? A district with a good school? A neighborhood with a low crime rate? Easy access to public transportation? It’s imperative that your needs dictate your purchase. When you eventually decide to resell, the same needs that led you to buy the house in the first place could bump up the value of your property.

5. Seek professional help.
Real estate agents and finance experts are going to be your best friends when you’re in the process of looking for your dream home and the right financing.

6. Involve your loved ones.
Always consult with your spouse or partner if you’re thinking of buying a home. You might even want to get your children’s opinion, if they’re older. After all, if it’s a family home you’re buying, the family should have their say.