Be attentive of what you can pay for. There is no need to hurt yourself money-wise right off the bat. Keep in mind that you don't want your mortgage to exceed 20% of your income after taxes.



If you are a veteran of the military your state could have a program that offers competitive rates. In addition to being qualified for a VA loan, which doesn't require a down payment, mortgage programs for veterans usually offer much lower rates than banks. The best thing to do is to find out if your state has a veteran's mortgage program.

Also, it would probably behoove you and your spouse to rent at first. A lot can change during the early years of marriage while the two of you are figuring out where you want to live and what you want. A big advantage of waiting is it allows you to save money which you can use on a down payment.

Incorporating a down payment when acquiring a mortgage can remove that pesky home owner's insurance expense. Home owner's insurance (not to be confused with home insurance) is a fee the banks charge when a borrower cannot afford a down payment. The monthly home owner's insurance payment is tied in with the monthly mortgage payment (note they are separate entities) and usually is stretched over ten years. This separate capital protects the bank in case the house ever gets foreclosed.

Another plus to waiting is it allows you more time to increase your credit score, which could give you a better rate. To increase your credit score, obtain one credit card for you and your spouse with a low max limit and low interest rate, and make payments on it each month on the dot. These well-timed payments will be given to the credit bureaus and will shed you in good favor with them.

Another important thing to keep in mind is obtaining a 15 year mortgage in lieu of a 30 year mortgage. Then, make payments every two weeks instead of every month. Doing this will allow you to make 13 payments per year instead of 12, and you will pay off that 15 year mortgage in around 11 years! You will also be creating precious equity in your home.

Most mortgage companies will be pleased to assist you in setting up a draft In fact, most will automatically draw the payments from your checking account every two weeks (I have mine set for every payday which happens to be every two weeks). This is nice because you need not fret about writing a check and worrying if your payment will make it on time. Just make sure the funds are in the account!

Acquiring a house and a mortgage can seem nerve-racking for first timers, but being patient and having a game plan will serve you well. Remember to be patient when purchasing a home. There is a lot to deliberate and hurrying into things will not serve you well.