Buying your own property whether it’s a land, house or office space can be very exciting, but can also be very frustrating and stressful if you make wrong choices. This article provides you with some important guidelines to avoid mishaps:
#1.BUY THE HOME YOU NEED NOT THE MOST EXPENSIVE THAT YOU CAN AFFORD.
This is very important to any first time buyer. When you apply for a mortgage at first, the bank may be willing to lend you more than you actually need. However it seems wiser, and more advisable to opt for what you need. For example, the lower payments that come with having a smaller mortgage can be very helpful when you want to start a family or save for your retirement plan. Furthermore, a smaller home can mean less money needed for repairs, utilities, and upkeep.
#2.SAY NO TO DEBTS
Pay up your debts. Not only can paying up debt improve your credit score, it helps increase your chances of getting qualified for a mortgage and improves your financial well-being as well. Paying up your debts can also help you qualify for a mortgage, since lenders prefer to have your total debt including your new mortgage to represent not more than 43% of your income.Also avoid new debts.
One of the most important yet usually overlooked guideline, is staying away from new debts. As you prepare to buy a new home, try to stay away from taking out any new loans, including car loans. You’ll be in a much better place to qualify for your perfect mortgage and mortgage terms if you are debt-free.
It would be very helpful to try to find the best homeowner’s insurance policy. Your search shouldn’t just be about finding the cheapest policy you can find; this is most likely the biggest investment you’ll ever make, so you want a high-quality policy that will serve its purpose if you ever need it. Make sure you consider the quality of the policy and its coverage options.
You can save money on your homeowners insurance without choosing a cheap policy, by evaluating the actual value of your house’s contents, and insuring them accordingly.
It is important to pay attention during the home inspection process. It is important to ask questions but always remember to go round, and see things for yourself, and be extremely attentive to avoid overlooking some determining factors, or sustaining losses or expensive bills.
#5.MAKE USE OF YOUR TIME WISELY
Start saving towards your home.
It becomes much easier to save for your down payment once you start early. This also helps reduce your debts as you would require a smaller mortgage if you have saved enough to cover a reasonable part of the cost of your home.
You need to save up at least 20% of your future home’s value to use as a down payment so you can avoid paying private mortgage insurance (PMI).
Don’t rush things.There are lots of factors to consider when buying a home, and you can often benefit by searching in different areas, neighborhoods and price ranges before you make a decision. Remember that rushing a decision doesn’t really give you the opportunity to make choices and find your perfect home.