House Buying Made Easy with these 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. By reading this article, we will talk more about the essential tips which will increase your odds of ensuring that you’re making the right purchase.
I recommend strongly that you take the time to read these tips if you’re seriously interested.
Tip number 1. Set your budget – many professionals as well as other sources will tell you that budget is the first thing you have to secure. 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.
This is of course something that you don’t want to happen and as a result, you have to learn the significance of setting a realistic budget. Always start with the down payment when doing calculations. The down payment recommended range from 10 to 20 percent but if you don’t have that amount, you can go for loans that let you to pay down payment for as low as 3 percent.
Remember that down payment is a vital part of your purchase because this keeps you from having to pay costly mortgage insurance on top of your house payment and 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. Last but not the least, never open a new credit account at any given time throughout the process as this can negatively impact your credit score and increase your interest rate.
Tip number 3. Study all the applicable loan options – if you are a couple or a certain individual who wants to buy a house, you can seek first-time homebuyers program that will guide and assist you in finding terms that are fit to your budget and needs. 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.
So after discovering these tips, it is now the best time to take actions and have a home.