You begin when you are looking for a home. Start by accurately assessing what you can spend on a mortgage and what you are willing to give up for that mortgage. Do not rely on potential future salary increases. If you do get huge salary increases, then you can buy a bigger home later. Use the mortgage calculators available and then try to live setting aside that amount of money for a couple of months.
Do not let a lender or real estate agent talk you into a house that costs more than you want to pay. If you feel that you may have problems making the monthly mortgage payment, go with your feelings. Just because on paper you can afford something does not mean that you can live that way, and others will not be around when you go through the monthly ritual of deciding which bill gets paid late or when you take that second job just to pay for utilities.
Once you have a home, set aside some money for unexpected emergencies. Sickness, accidents, new babies, and the loss of a job all have a way of sapping your funds. Experts say that everyone should have a minimum of three months of mortgage payments set aside for those unexpected emergencies.
Make your mortgage payments on time. Do not play the, “I have fourteen days grace period game.” If you miscalculate just once, you may end up with not only a bad mark on your mortgage but also a sizable late fee. Nowadays lenders are not being patient with late
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