Sep 15 2019
10 tips when buying a house or property
Posted in Realtor
We understand that most of us need some guide, like 10 tips when buying a house or property. So, below are a set of checklist for you. A house or property is regularly the greatest money investment you’ll make in your lifetime. Additionally, a house or your property is where we start a new life with our own family. When building your dreams, getting a new house or property is commonly part of the checklist.
- List of 10 tips when buying a house or property
- How long will you be staying in your new house?
- How to own your Dream House?
- How to check place safety and accessibility?
- Why do we need a budget limit when buying?
- Why is it better to pay a higher down payment installment?
- What happens if I fail to make monthly payments?
- How to be ready on a pre-approval screening for mortgage?
- Why should we compare prices between companies?
- How much should you budget for a mortgage?
- Are you ready to buy a new house or property?
List of 10 tips when buying a house or property
These are 10 questions to ask ourselves before deciding to invest in a new home.
How long will you be staying in your new house?
First, on our guide 10 tips when buying a house or property. Purchase for the long term. You should buy a property with a big space if you are planning to have a lot of kids. A house is a reflection of our lifestyle. Also, it serves as our protection and comfortability on our day to day living. A house is part of a human’s basic needs. And we spend most of our time in our house since childhood till we reach maturity. So, considering to buy for the long run is a must.
Some of us only consider the factors on what is present when buying a house. But, because of excitement to have our own place. So, we usually refrain to consider the long term plans. For example, if you have plans migrating abroad, buying a big house may not be a wise option. Practically, almost half (46%) of all property owners, think that way. In short, buy a home you want to live for the next five years. If you are planning to migrate, it is most expert’s advice, not to buy a house like a mansion. And spend the money on the house that you are planning to live for almost a lifetime.
How to own your Dream House?
Second, on our guide 10 tips when buying a house or property. Buy a house of your dreams. Do not just buy for the sake of just getting a new place to live. Otherwise, you’ll end up suffering to live a home that you are not happy about. Because, once your kids grow up, a memento of your fulfilled dream house will be part of their life. Think of it as sharing your dreams with your kids.
Do not be passive when buying
So, do not buy a property or a house that doesn’t meet your standards. In terms of the design, space, location, and functionality. For example, if you want some privacy, do not buy a house with lots of full glass windows. The same thing, if you are lazy to clean your house and can’t afford a maid or housekeeping services. Go for a smaller place which you think you can clean up when needed and won’t get tired of tidying up a wide area.
How to check place safety and accessibility?
Third, on our guide 10 tips when buying a house or property. Check the vicinity and roads. You should consider things like, how your life will look like once you move in. Know if the place is safe from possible criminals and calamities.
Things to check during an open house visit
- Are the foundations of the house strong and can withstand an earthquake?
- Is the place flood-prone, if so, are there alternative roads?
- Is there history of burglars in the neighborhood?
These are just some of the things you should know and consider when safety and accessibility are given a vital priority. Moreover, we need to be wise that we get all our money’s worth for buying a house or property. So, always spare time for an open house visit.
Why do we need a budget limit when buying?
Fourth, on our guide 10 tips when buying a house or property. Set a spending limit and stick to it. It’s imperative to set a spending limit early. Hence, we do not want to be overloaded with loans and debts. Moreover, in the present market before you even start taking window shopping for your dream house. So, it’s typical to go over your spending plan and end up gathering more funds than you have ever thought.
Statistics about over spending
Based on statistics, the information shows that urban purchasers are fundamentally bound to go over spending budget in the – city (60%) than a town (25%) or barrio (15%) purchasers. The primary reason is that the cost of living in cities is much higher than in towns and barrios. One tip is that in terms of furniture. Go for the basic stuff first then the luxury and decorations are to follow once you have the spending budget. Do not hurry filling it out with extravagant decorations immediately.
Why is it better to pay a higher down payment installment?
Fifth, on our guide 10 tips when buying a house or property. Go for a 20% down payment. In the event that you can bear the cost of it, a 20% upfront installment is perfect. Here is why:
You need to evaluate the positive and negative factors and decide for yourself. A bigger down payment helps you lessen the chance of borrowing. The more you pay upfront, the smaller your credits, and debts. That means you pay less of the total interest costs that may add up over the term of the loan. Also, another benefit from it, is that you can lower your monthly payments. Consequently, making it easier for you to budget your salary.
Benefits of paying higher down payments
So, for those purchasers who put progressively 20% down payment upfront. They are usually more attractive to real estate agents. Compared to purchasers who go for equal to 10% down payment and below, which receives fewer offers and neglected by realtors.
Agents would usually prioritize the clients who are willing to pay more than 20% down payment, but because they leave a good impression that they have the capacity to finish paying the rest of the terms. Experts conducted research and found that purchasers with higher upfront installments make 70% good deals. Rather than the 30% of deals given to lower upfront installments (less of the 20% down payment).
Moreover, higher upfront installment lessens your money related problems. You would prefer not to owe more cash than your home is worth. So, if nearby markets plunge when you have to sell in the future, it wouldn’t be much of a bargain price.
What happens if I fail to make monthly payments?
Sixth, on our guide 10 tips when buying a house or property. Ask if six months hold is available. Hence, we couldn’t tell if money problems might happen or you get ill. So, we need to have a back-up plan when this situation would come. A six months hold would guarantee you, not to be overloaded with debts. A good way is freezing your monthly payments. Consequently, continue paying again once financial capability stabilizes or you get well from an illness just in case.
Preparation to make a payment after hold
This short hold should cover a half year of everyday monthly costs. In the event that you become ill, face a financial crisis or lose your employment. A vital hold won’t just spare you from budgetary hardship in a crisis. Yet, in addition, it gives you a genuine feeling of serenity.
How to be ready on a pre-approval screening for mortgage?
Seventh, on our guide 10 tips when buying a house or property. Ready your documents and settle obligations. Most mortgage companies would make a background check to see your payment capacity. Also, these companies would like to know if you have good-paying records. So, prepare all your documents like bank account statements and assets. Settle your obligations like credits or debt from other companies to make sure you can present a clean record.
Background Check and Credit Score
Passing the pre-approval screening can make your life easier on getting your dream house or property. A background check can take longer for purchasers who have bad records and could end up being rejected.
Why should we compare prices between companies?
Eighth, on our guide 10 tips when buying a house or property. Compare the lowest cost deals. So, to get the best deal we need to shop for the best offers from each company. Hence, we only do not compare the prices but also other factors. Like, interest rates, how many months to pay and the good reputation of the company.
Make a shortlist
So, for a start, create the top 10 deals. Then, make a shortlist of the best deals of up to 3-5 offers. If you have a partner, discuss it with each other and ask their opinion. Moreover, by doing this you can highlight the pros and cons of each deal. Knowing the positive and negative points of each deal would help you make a final decision.
How much should you budget for a mortgage?
Ninth, on our guide 10 tips when buying a house or property. Spend one third or equal to 33 percent of the net income of your salary (after taxes and bills). But, because the other one-third of tour salary goes to food and bills. While the rest is for your savings and emergency funds.
Are you ready to buy a new house or property?
Tenth, on our guide 10 tips when buying a house or property. Take some time to think before deciding. Urgent decisions lead to disaster and other problems. So, be sure to think about it and ask your closest friends and family’s decision. So, to wrap our Tips When Buying A House Or Property. The basic question to ask yourself is that, are you ready to buy a new house or property?
Yes, ready to buy a house
If yes, then consider starting looking for recommendations from friends and co-workers. Also, before inquiring from a real estate agent or a company, check their reviews online.
No, still need time
If no, start saving first and strive to strengthen your career. Take some part-time jobs if the financial situation is your problem. This will also help boost your credit score.
Final thoughts about our guide 10 tips when buying a house or property
Planning to buy a new house or property can be stressful. And the difficult decision may leave you hanging and feel lost. So, we hope that through this guide, we can help you to make a list, Also, to make the process easier for you through this big step towards your future. Moreover, if you live in rentpad, check our guide when moving into a dorm. We hope that these Tips When Buying A House Or Property is helpful for you.
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