Can you relate? Buying a home, looking at all the houses for sale can be an overwhelming and exhausting process – physically as well as emotionally, not forgetting it’s the biggest investment most people will make in their lifetime. Finding the perfect abode is not an easy task but there are many things you can do to improve your odds of making the right choice.
Here is a list of the Top 5 things I considered when buying a new home and so should you:
1.) Affordability – Before you take the first step towards buying a new house, it is important to know whether you can afford it, and if the answer is yes then what is your budget range. Setting a price range helps you streamline your search, so you can look at houses within your budget.
A good rule of thumb you can follow is to buy x% times your annual income which you feel confident with if your 2 income earners the better (ie x% multiply by your yearly salary). Home loan EMI, utility bills, child’s education, and other household expenses are some of the things you must also consider before setting a budget for your house. This is based on the lifestyle you want to keep.
2.) Good Schools – Whether you have kids of your own or not, having good schools nearby can do wonders to the value of your house. Buying a house in a good school district will not only increase the value of your property, it will also make your house more salable in the future. A lot of families are willing to pay a premium price for such houses.
3.) 10-20% Down Payment – If you are planning to apply for a conventional loan, you will need to make a 10-20% down payment of the total value of your house. This is the standard rule for all banks and financial organizations. However, if making this payment is tough for you, don’t fret coz’ there are a variety of federal and state loans that only require 3% down payment.
4.) Get Pre-Approved – It is a good idea to get pre-approved for a loan before you even start looking for houses. This allows you to confidently go and look for houses that match your needs and are within your budget. You will also be in a better position to make a final offer once you like a house and do not have to worry about finances. Pre-approval from a bank is based on your actual income, debt history and credit score.
5.) Professional Help – Though the World Wide Web can provide access to home listings and can even help you find the right house, it is still advisable to hire an agent. An experienced real estate agent can help you in more ways than you can imagine – from finding the right houses for you to negotiating the price with the sellers, an agent can be the best guide when it comes to buying a new home.
For More reat tips when buying a house or even selling a car come back to our blog and if we dont have the information, ask us and we will try to help.