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Buying a home whether old or new is one of the most important business decisions that you will make during your lifetime. The key to making this process as simple as possible is finding out how much you can afford to buy before your real estate agent gives you the grand tour. To find out how much you can afford on a house, you must start by adding up your general monthly expenses (such as food, clothing and shelter) with your other debts such as car loans and credit cards. The next step is to minus your expenses with your gross monthly income. The money that is left over will determine how much 'house' you can actually afford.

The next step is to do your own research. Many companies offer discounts to home buyers, especially first time buyers. If you are currently renting an apartment or a house, there are programs that will actually help you save a percentage on the down payment of your future home. Whenever you pay your monthly rent, your landlord will automatically transfer a small percentage of your rent into a home buying fund. To find out more information on special funds for renters, talk to your nearest realtor or log onto the internet.

The next order of business when buying a home is the credit issue. Your credit score will greatly affect your interest rate once you are approved for a home. Many smart home buyers save thousands of dollars by following a few money saving tips. Some people place a large down payment so that their monthly payments are lower. Many people save enough money to buy their homes free and clear. That means they go straight to the source. They may purchase or work out a deal with the current home owner whose house is on the market rather than going to the bank or mortgage company. Many home buyers invest their money in foreclosures and tax sales. Tax and foreclosure sales are perfect for those with credit issues because buyers can purchase a home regardless of income and credit.

If you have good credit and enough income to purchase a house, get pre-qualified before meeting with a mortgage or realty company. You can fill out an application online or over the telephone. Some companies will have an answer within a 24 hour period. This is the smart way to shop for a new home because you know how much 'house' you can afford before falling head over heels on a house that you can barely afford.

To find out further books available at major retail bookstores. You can also find informative information on the Internet.