Things To Do Before Buying a Home
Buying a home is a bog investment that needs to be taken seriously. This is especially true if you intend to live in the house. Before buying a house, there are a few things that you need to do first. Well, you may think that you are ready to finally buy a house but have you really done your homework well? Here are some of the things you must do before buying a house.
Have a checklist
Whether you are a first-time buyer or an experienced home buyer, buying a home requires that you do some checklist if you want to buy the best home for you and your family. Some of the things you need to check are the types of savings you need to purchase the home. Read this post for example: http://www.huffingtonpost.com/news/celebrity-real-estate/.
Get a home you can afford
It is advisable that you get a home that you are financially comfortable with. There are a number of rules of thumb that can help you get an idea of how much home you can afford. If you are using FHA financing for instance, your home payment cannot exceed 31% of your monthly income. With some mitigation factors, FHA can let you go higher. You can improve your chances by trying that financial obligation long before you take a mortgage. Visit our site and click for information on these homes.
Save for down payments, closing costs
Considering your financing and credit, you will need to save some money enough to cater for your down payment. This should be somewhere between 3% and 20% of the price of the home. Whatever the source of your loan, you will also need to pay closing costs and these may vary from state to state. To improve your chances, bank your own money and seek down payment assistance. You can also negotiate with the home's seller to cater for a fraction of the closing costs. Be sure to learn more about us through this article.
Build a healthier savings account
Building your saving is something you should do not just for the down payment and closing costs needs. This is because your lender does not want to see that you are not saving any money. Other lenders will also give you a little more latitude on other factors if they realize that you have a cash cushion. The trick here is to set aside some money every month because on average, you will spend 2.5% to 3% of your home's value annually on repairs, upkeep, maintenance and other things. This way, you will be able to cover up repair and maintenance issues once you move into the new house.