Are you planning on buying a home? You don’t need me to tell you how intimidating this is. From saving enough for a down payment, creating a proper budget, and mortgage shopping, there are many things to consider.
I’ve discussed some tips that might help.
Create a Housing Budget
If you make enough, you may be tempted to take out a large mortgage. Going for a large mortgage just because you can is never a good idea. You will be stuck if you lose your job.
Create a budget so that you’re forced to look for homes that are not too expensive. Going through local listings will help you figure out what an appropriate budget would be.
See Multiple Houses
Looking at many homes is smart for more than one reason. You’ll increase the chances of finding your dream home. And also, you’ll increase the chances of finding a house that doesn’t require much renovation.
Hiring a real estate agent would be ideal. They have connections, so you’ll visit more listings than if you were house hunting on your own.
Get a Home Inspection Done
Although a house may look good, this may just be on the surface. Hire a property inspector. He will inspect the property and find all its issues. You won’t end up buying a home that you’ll regularly have to repair.
Shop for a Mortgage
A pro tip would be to look hard before settling on a mortgage. Some banks charge higher interest than others.
Ideally, you’ll work with a lender that is flexible, doesn’t charge that high of interest, and is great at communicating. You may think the latter is not important. However, a lack of communication can result in hidden fees.
Your credit score matters when taking out a mortgage. A bank won’t want to lend to you if you have poor credit. You’ll have to work with a finance company instead. Go for big names like Clover Mortgages headed by Steven Tulman. Good reputation is important when it comes to finance houses.
Save for a Down Payment
All lenders require that you make a down payment. This is usually 20% of the property’s asking price. Make a bigger down payment than required. You will have more equity in your home.
Be Prepared for Additional Costs
Let’s say you make an offer and close. What happens on a closing day? You’re done with all the payments, right? Well, you might have to pay special land taxes. This differs depending on where you live. Remember that you’ll need to hire a property lawyer for the transfer of the deeds too. Save for all of this.
Get a Good Contracting Team
Most people don’t buy turn-key homes. There may be a few renovations to be done. Be wise with the renovating team you work with. They could drag the renovations, resulting in you moving in months later.
There are a few tips and tricks to consider when buying a house. The most important would be to mortgage shop.