1. Wait
Review the expenses that are coming in the near future and some long-term goals; Consider expenses coming four or five years down the road.. In order to prosper and move forward, it’s necessary extensively manage your discretionary income. Make sure you pay every one of your bills on time, every time, all of the time. Make debt repayment a habit that becomes second nature to you.
2. Save
Once your current budget is under control, you’ll need to start putting money away. Build up enough to not only cover emergency funds, but also to cover a down payment and the expenses of buying a house. It’s recommended to save around 20% of the purchase price before making your down payment.
3. Plan
Maintaining a home is not cheap and there a lot is more to home ownership than just paying the mortgage every month. Write down any and all expenses you may have monthly. This should help you to create a budget for the months to come and visualize where you can cut back. Rule of thumb is that your housing expenses should not exceed 28% of your income.
4. Prepare
Being organized with your financial records shows that you are being sensitive to the details. You know what your budget is. You know what your net worth is. You have your finger on the pulse of your money and you know that you are credit-worthy. With that said, coming from a bankruptcy to your fresh start means that it is unlikely you will be able to buy a house without a mortgage. When you finally get to apply for a mortgage, find out in advance what documents the lender will require from you and show up with them prepared to complete the application.
5. Shop for a Mortgage & a House
When making any large purchase, comparison shopping is extremely important. Compare the costs of homes to know that you’re getting the best deal. also, keep in mind that you are not only shopping for a house to make your home, but you are also shopping for a mortgage to finance that purchase. Over half of all homebuyers do not shop for a mortgage.