Preparing for your first mortgage Part Two

Start saving.

I know that this seems like a no-brainer suggestion but you would be surprised by how few people actually try to build any savings. Having additional funds strengthens your ability to be approved. It shows that you have reserves and can also be used for the down payment and closing costs. In addition, there are also several out of pocket expenses you can expect, such as the earnest money and appraisal and/or inspections costs.

Ways to start saving:

· Pay your self first: This is probably the most common savings technique. The first thing you do on payday is put some money in your savings account. Be careful to make all of your monthly obligations as you don't want to run the risk of ruining your credit. If your credit is good, you want to keep it that way.

· Clip Coupons: Don't tell me that it is too difficult or time consuming. If you are serious about obtaining that mortgage, you will do whatever it takes.

· Eat at home rather than dining out. It is cheaper. Curb other activities such as movies, sporting events, etc. Your favorite sports team is going to be there next year, you can wait until then to see them. Also consider brown-bagging it at work rather than eating in the cafeteria or buying from the roach-coach.

· Quit or cut back on your vices: Quitting smokingis more than a healthy decision, it is a smart financial decision. Avoid playing the lottery or purchasing those little scratch off tickets. These are just games with a very slim chance of winning anything substantial. Your home is an investment in your future and the future of your children.

· Take shorter showers and turn off the lights when you leave a room: Consider whether or not you need all the bells and whistles with your phone service. 512kbps high speed internet is not significantly better than 256kbps and is much more expensive. You can always upgrade later.

If you just take a minute to think about it, I am sure you can think of several other ways to cut back and save a few extra dollars. What it all comes down to is desire. If you are really motivated to purchase a new home for you and your family, you will find a way to make it happen. I have only offered a few suggestions that I have gathered over the years. It is up to you to do the work.