Life’s most exciting moment is buying a house. The time you have decided to buy a house to take advantage of tax benefits and a sense of community or simply paint the walls whatever the colour you like. If you understand each step properly you will make smart and confident decisions about the house.
There are a few key points as follows.
ā Access your financial credit score before buying a house.
ā Calculate your budget before buying a house and how much you afford to spend on it.
ā Research various financing options, such as fixed rate loans, VA loans, jumbo loans etc.
1ā¢ Make sure you are ready
The first step of the house buying process is to ensure you are financially stable and prepared because it is the long term commitment. And also ensure your income, expenses and savings to access your current financial situation. Your solid job and income is also helpful for mortgage approval.
2ā¢ Set a budget
First, review your budget to see how much you can afford. Start with a monthly payment that is just off the cost of the house and allows you to manage your budget. Sometimes it happens that many lenders ask you for a down payment of between 20 percent and 30 percent of the house. Lenders will require you to pay PMI if you have a down payment of less than 20 percent, which only increases your monthly mortgage payment, making it impossible for you to afford a home.
House prices vary across countries, averaging around $357,138. Home prices vary widely across the United States, spanning a wide range from one region to another.
3ā¢ Find the right property
After reviewing your budget, you should consider the area such as location, office, schools and various amenities. Choosing the best property is like solving a puzzle.If you buy a house near a school or office and other similar places, it saves you money and time.
Creating a home listing tailored to your desires can narrow down your search. Sometimes home buyers look at the type of home, such as the number of bedrooms, number of bathrooms, square footage, etc., when choosing a location.
4ā¢ Shop for Financing Options.
You have the best options for your mortgage that is most convenient for you. Which varies based on your monthly debt, credit, taxes, and insurance.
Here are some common mortgage as follows.
ā Conventional loans
ā FHA loans
ā VA loans
ā Jumbo loans
ā Renovation loans
5ā¢ Find a real Estate Agent
A real estate agent can help you best buy a home, even acting as your advocate who can negotiate and get you the best price for your home.
