In light of the mortgage rates that remain near historic lows and lower housing prices, future homebuyers may think this is a perfect time to buy a home. But before you rush into a major life purchase, make sure you're financially ready. A little preparation now will save you a lot of financial headaches in the future. 

Prepare Now, Buy Later

• Make sure you're ready to make the financial commitment. Potential homebuyers who know how to manage their money, have secure jobs and good credit may find it easier to get approved for a mortgage.
   
• Create a budget to see how much you can afford. Make sure to factor in all of your housing expenses, such as closing costs, monthly mortgage payments, insurance and property taxes. 
  
• Save for the down payment. The days of not putting money down on a home are over. After the subprime mortgage crisis, lenders stiffened their standards. You may need to put at least 10% down when you're ready to buy.
  
• Be realistic about what you can afford. A good rule of thumb is to make sure your mortgage payment is less than 33% of your monthly income, before taxes and other deductions.
  
• Factor in costs down the road. Maintaining your home can be expensive. If your dishwasher breaks or your roof is leaking, you will be responsible for the repairs.

A Lender You Can Trust
When you find the home of your dreams, Direct Federal can guide you through applying for a mortgage. Our trusted mortgage loan officer will help you find the mortgage that's right for you. 

To schedule an appointment with our mortgage loan officer, call 781.455.6500.