The Guide to Buying Real Estate
Making the decision to buy your first home is a big deal, but even bigger is the act itself. You finally get started on a process that will make you a homeowner and give you new responsibilities. The process is only as complicated as you make it and this guide will show you just how smooth it can be.
Before thinking of buying a home, you want to ensure that your credit standing is good – if you intend to borrow funds. You want to check your statements regularly to ensure that they are free of mistakes that would ruin your score. If there are any, get them corrected as soon as possible.
Determine what you want
You already know the neighborhood you want to live in and so the first step is determining whether you can afford it. The general rule of thumb is to get a home that is not more than three times your annual income so that you don’t take on a mortgage that you cannot afford. So, check the prices even before you find a realtor and decide whether you can get into this liability.
Time to choose your preferred lender and get pre-approved. As usual with loans, you want a lender of good repute, and one who can close quite fast so you don’t lose your house. You have the option of choosing a lender with a fixed rate of interest or an adjustable rate mortgage, which fluctuates to reflect market rates. Adjustable rates are better as you could save a few coins along the way.
If you are concerned about the new costs that come with the new mortgage repayment, round up all your costs including the new liability – monthly repayments. The numbers will give you an idea of whether you can afford to pay without a real hustle. Also, see if you can get a $5000 instant approval loan if you are in a hurry.
Make the Offer
You may find that you don’t need a real estate agent especially if you have time to house-hunt and go for viewings. When you have finally settled on the best house within your price range, check out house insurance in the neighborhood and then make an offer for the house. Your lender will initiate some processes to be sure that the house is a project they would want to fund and then you are good to go after the inspection. The rest is just up to the lender to expedite.