Buying a brand new car, buying a home, and even buying a vacation home are all major purchases. When it comes to deciding on these things it’s important to take some time to consider what it is you want before you write a check. When there is a good deal of money online toward any purchase you want to weigh the pros and cons.
You also want to determine how you are going to pay for this big purchase. Do you have all of that money saved up? Probably not. So here are some money related tips to consider before you buy that new home or decide to purchase a villa in Tuscany.
What’s Your Credit Look Like?
Before you get your heart set on any kind of large purchase you need to take a look at your credit. If you have a low credit score, or you have a lot of late payments or too many open accounts, you may find it hard to qualify for the loan you need in order to make your purchase. You might need to take some time to get your debt under control first, which can happen faster with debt consolidation.
This isn’t always a deal-breaker, though. If you have a substantial amount of money put away toward a down payment it could be enough to help you get past some of this bureaucracy. You may also want to find yourself a co-signer that has better credit than you, that is willing to back you up and trusts that you’ll make your payments on time until your purchase is paid off.
What’s Your Income Look Like?
Stop and take a look at your income. Can you afford the monthly payments that are going to come along with the purchase you are planning to make? You can find calculators online that will help you determine the amount you’ll be spending monthly on a new car or a new house. Use them.
Just because you might not be able to afford a particular car you’re looking at or a particular house doesn’t mean you don’t have options. You may just need to shop around for something a little less expensive, which is where those calculators will come in handy.
Are Their Multiple Incomes?
If you have a significant other you want to make sure you are considering the money they gave coming in as well. They are, after all, going to live in that new home with you or drive that new car at least once in awhile. You’ll even have to have them insured on that car, even if you’re the one that is going to be driving it most of the time.
If your significant other has good credit, they will make the perfect person to co-sign on your loan. Other liable co-signers include parents and siblings. However, your significant other’s monthly income could give you a boost in how much home or car you can actually afford, allowing you a bigger home than you might be able to get on your own.