Home Buying Tips
There is no doubt that buying a house is going to be exciting especially for first time buyers but you should not let your emotional attachment overshadow other vital aspects of the purchase. In this article, we will be focusing on the essential tips that can help ensure that you’re making the right purchase for your hard earned money.
If you’re interested, I advised that you read these tips compiled for you.
Tip number 1. Set your budget – almost always, budget will be the initial advice you’ll get from professionals. It is never a wise move to chase after your dream home from the beginning as this would result to bad decisions in the end. You’re sure to face foreclosure if you’ve got unexpected expenses or dealt with catastrophic event.
Of course, this is something that you don’t want to happen and thus, you should learn the importance of setting a sensible and realistic budget. When you are readying your calculations, always start this with down payment. The recommended down payment ranges from 10 to 20 percent but if you do not have that liquidity, there are loans that allow you to go for as low as 3 percent.
Down payment is an integral part of the purchase as this keeps you from paying expensive mortgage insurance on top of the house payment as well as the homeowners insurance.
Tip number 2. Get a preapproval – the next important thing to make is getting a letter of preapproval right after you discover more about your set budget. This way, if there are any unexpected expenses or medical bills to be settled, you come prepared.
Aside from that, you should be mindful that credit checks by making payments on the dot and at the same time, paying off past due accounts. Of course, never ever open a new credit account at any given point of time during the process because this can impact your credit score negatively and even increase your interests.
Tip number 3. Study all the applicable loan options – there are programs intended for first-time homebuyers which assists couples and individuals who are just starting out to get favorable terms for buying their first home. However, you need to take everything on a step by step basis because some programs need the owner live there for a set period of time or lose equity/tax benefits if an early move out has to be made.
If you think that you are ready to open a new chapter in your life, then now is the time to take actions.