BUYING A HOME – GET OUT OF DEBT
When thinking about buying a home, the best thing you can do in preparation is to get out of debt. Unfortunately, most people have some level of debt, which can be stifling. However, regardless of the level of debt, there are viable options for breaking free. Once your finances are in better order, you can find the perfect home and become a homeowner.
Sadly, people have become so used to being in debt that this has become an acceptable way of life. Then when you consider the stresses of raising children, going to school, or caring for elderly parents, getting out of debt seems like an impossible task. However, it is important to understand that you have ways of getting out of debt so you can enjoy being a homeowner and all the benefits that come along with that.
For starters, contact any lenders from which you are past due. Most often, lenders are happy to work with you on some type of repayment plan. After all, these companies do not want to lose money. They would much rather find a solution that is good for you and for them. Therefore, allow them to work with you in finding options to bring delinquent accounts current.
In addition, you might work with a credit counseling service. These services are generally free but act as the middle person between you and your creditors. In this case, you would be set up on a repayment schedule that you can meet and at reduced interest rates. In most cases, the repayment schedule can take a debt that would take you 10 years to pay off on your own and have it completely paid for in two years. With this, you can see buying a home becoming a reality.
You will also need to restructure your spending, being careful where every dollar goes. Chances are you have money going out without even knowing the overall impact. For instance, if you buy lunches at work, you are probably spending $5 or more. However, by packing a lunch at home, you could easily save $2 to $3 a day. While that might not sound like much when looked at on a daily basis, if you look at it long-term, you have a nice start at a down payment between $750 and $1,095 annually.