Buying your first home is both exciting and worrisome. Exciting, because you finally get a roof over your head during your lifetime, but worrying, because it’s one of the most significant financial steps of your life that you’ll ever take. So, it’s essential to prepare yourself for this major investment.
The answers to the following questions will help you in buying your dream home:
#1 Are you ready to buy a house?
Analyze whether you’ll be better off renting a house than buying it. This is because owning a house may turn out to be more expensive than renting since it entails repairs, utility costs, expense on water and electricity, and the like, other than the cost of the house itself. See if you’re financially prepared for all these.
#2 How much can you afford?
It’s certainly everyone’s dream to buy a big house in a good neighborhood. However, for this, you may need to dig deep into your pockets. As a thumb rule, the cost of the house shouldn’t be more than three to five times your annual household income, that is, if you plan for 20% down payment and your mortgage, taxes and insurance are between 25 to 30% of your income. The idea is not to get stretched financially.
#3 How to find your ideal home?
Read real estate advertisements and listings in newspapers, magazines and websites. Talk to property dealers of the area you’re interested in. Shortlist the ones you consider financially viable, see how long they stay on the market and whether they suffer from any price fluctuations. This will give you an idea of the housing trends in your chosen area. Make sure you are using local resources properly. For example, if you live in the Chicago area, you would want to look for a Chicago Realtor rather than a LA realtor.
#4 How to raise a loan?
Take this step even before you start looking for a house. Once you know how much you can spend, get prequalified for a mortgage by providing the required financial information to your mortgage banker. You can select homes based on the loan amount. In case you don’t want a mortgage broker, contact your local bank or credit union to get this loan.
#5 What are the best payment options and loan types?
Lenders usually offer competitively priced loan programs. You will need to know what is your priority in choosing a mortgage, whether it’s keeping the monthly payments as low as possible or ensuring that monthly payments never increase or some other provisions. A wrong choice can hurt you financially. However, for most home buyers, the best loan option is a 15 to 20-year fixed-rate loan.
#6 Why does a good realtor matter?
A good realtor is indispensable for home buyers. This is because, a realtor is the one who’ll understand what exactly you’re looking for in a house and help you find one that not only suits your needs but also fits your budget as well. The realtor will also help in negotiating the terms favoring you. So, it’s crucial to find a realtor who understands your requirements. To this end, UpNest is a real estate company that has a team of well qualified real estate agents, who’re most competent in buying and selling houses. Taking the services of such real estate companies will get you your dream home without any hassle.
#7 What all to see while buying your home?
A house on offer may appear most appealing, but you need to be sure it’s in perfect condition. This calls for a house inspection before you seal the deal. The things you should check during the inspection are plumbing, electrical system, doors and windows, general maintenance of exterior, and the like. Once you select to buy a house and your realtor negotiates a fair offer, get it appraised. If found perfect, sign all the paperwork required to complete the purchase under the guidance of your realtor.
Home buying is the biggest investment of your life. To get things moving favorably, find a good realtor, who will not only help you in selecting your dream home that’s in perfect condition but also take care of all the paperwork and formalities for buying it.