Buying a house can be daunting and exciting at the same time, especially for first-time buyers. Seeing as it’s probably one of the biggest decisions you’ll make in your life, some heebie-jeebies are inevitable. But armed with the right knowledge via thorough research, you’ll likely make a good decision. Here’s what you should keep in mind to be ready with the financial aspect of the process –
- Ask yourself if you’re ready to buy a house-Homeownership is costly. You’ll be paying taxes, utility bills, water, repairs, and other maintenance. And if you have mortgage payments to take care of, and you lose again a significant chunk of your monthly income to payments. It is important to determine whether you’re ready to buy a house. Clear any debts you may have, or at least reduce them to improve your credit score.
- Be ready with the down payment- and other costs you’ll encounter. Down Payment can significantly reduce the amount you owe and therefore will also be one significant amount that you’ll be paying, but there’s a whole list of other expenses like agent commission, attorney fee, appraisal, insurance, title transfer, among other closing expenses. Do your research and you’ll be well prepared to tackle the situation.
- Look for the best mortgage for you- armed with the information about jargon like Adjustable-rate mortgage and Fixed-rate mortgage to find what is right for you.
- Shop around for a lender and get pre-approved- A pre-approval letter will give you an edge over other competing bids by giving you the distinction of a serious buyer. It’ll also give you a more realistic idea of your budget and save you a lot of hassle later.
- An inspection report can make or break a deal- Home inspection can reveal a lot about the house you’re buying. He will check for structural wear, major or minor defects, plumbing, HVAC, among other things. He will able to tell you what repairs may be needed, what requires immediate attention, and what is a safety hazard. An inspection can come in handy for renegotiating the purchase price. (Choosing a reliable and qualified Inspector can turn out to be tricky, but we’ve got you covered – Home Inspection Lithia)
- Pick the right kind of house and neighborhood- List out your priorities and deal breakers and decide where you are willing to compromise, considering not just the present but the future as well. Equally essential is scoping out your neighborhood and getting to know about your neighbors and see if the house is a fit.
Hire a reliable agent to guide you through the process, begin saving right now for all the expenses that you’ll need to cover, don’t hesitate to negotiate wherever you can, and ask questions whenever in doubt and it’ll be a relatively smoother ride.