Buying a home is an important decision and a major life-changing event. As such, it needs to be carefully thought about. The process can be long and requires a substantial amount of your savings. It will be worth it in the end.
To be able to buy the house of your dreams, there are a few prerequisites: a good credit score, a steady job, and a savvy strategy to save money for a down payment.
It’s always nice to know exactly how much you need to save. To do so, you’ll need to figure out the total mortgage you qualify for, based on your income and credit score. As a rule of thumb, the price you pay for the house should be no more than 25% of your total income.
Once you know that number, it’s time to estimate the percentage of down payment you will need. Generally, a 20% down payment is considered a good practice as it allows you to get the lowest interest rate and monthly payment. Having a 20% down payment...