Home Buyer’s Basic Guide For The First Timers
Being able to buy the house of your dreams could both be exciting and at the same time daunting. Although owning a home is an ideal investment to have you need to ask yourself if you are really ready to buy the house of your dreams. So whether you are still undecided or just want some informative advice, we have laid out for you several tips that will help you make the right decision in buying a home.
Ensure that you have save enough
Though down payments for buying a home has a small rate, know that a bigger down payment means getting a better rate at your mortgage. It is also advisable to stash a little amount of cash in case you need to renovate some parts of the home. Setting aside some cash for repairs is the most ideal thing to do so that you can right away address any repair needs of your new home.
Find some help
One of the shortest route to finding help in buying a home is to look for local government schemes that aims to help people buy their own home. If you are living in a community that does not have these kind of government programs, then the next big step to take would be to find a reliable lender to have your mortgage pre-approved prior to contacting an estate agent. You should also make advance calculations on all of your debt payments, home owner’s insurance, property tax, association fees for homeowners mortgage and housing expenses and come up with the total. After the total has been calculated, it is crucial to make sure that it does not exceed 43% of your gross monthly income as per the advice of the Federal Housing Administration to potential home buyers.
Anyone who is looking to buy a house is expected to start making offers immediately. Make sure that the offer you are going to make is something that you can afford and do not be pressured to make large offers since you are the only one that will carry this burden at the end of the day. With the help of a reliable real estate agent, you will practically be able to decide the amount of money that you need to offer in buying the house along with all the other factors that needs to be decided. After you have made an agreement with the seller, you will have to make a good faith deposit which will make the transaction proceed into escrow that usually last for about thirty working days. Once that has been processed, it is now time for you to take the house off the market list along with a contract that you will buy it if upon inspection you will not find problems that are too serious to handle.