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Consumer credit counseling may help those looking to budget for homebuying
By Sam Craine on Jun 10th, 2010
Owning a home is a priority for many Americans, and the current market may make it easier with lower interest rates and home prices.
Before consumers stop renting and dive into buying a home, they should take a few things to heart, according to the American Bankers Association. For example, potential property owners should make sure their mortgage payments are less than 30 percent of what they take home every month.
"If you can't keep mortgage payments below that, you may be better off renting for awhile," the ABA said.
Other debts should also play a factor, as owning money to other institutions could make it difficult to make monthly mortgage payments. There are also insurance, tax and maintenance issues to deal with when owning a home.
Having a higher credit score is also important, as this will help gain a lower interest rate on a mortgage, thereby reducing costs.
While this may be a lot to think about, there are options for consumers who want a little extra advice when buying a home or setting up a budget that will allow them to do so. One source of information they might consider is a consumer credit counseling agency, which can help set up a monthly spending plan.
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