After all, buying a house is not a mere investment but it’s a purchase which we make with a huge chunk of savings of our lifetime. So it is essential to mark some measures before heading into buying a house.
- Research and Prepare before buying a house:
Generally, home buyers make a mistake of directly heading towards the market and consult brokers for the house. But without prior preparation, buyers generally end up scrambling and buying a house at high costs.
So the first step you should take before buying any house is to jot down and sort few things like
- What is your final budget?
- What kind of locality is your choice?
- Whether you want a ready to move in flat or plots in some area;
These are the few things you need to get sorted before stepping into the market. The Internet is full of knowledge and information about the real estate industry. You can make a quick search about what kind of house you wish to buy, look for different options and make a rough idea of the amount you’ll need to invest in your dream house. Your awareness of real estate trends will keep you away from getting bluffed.
- Determine your budget for down payments and household expenses:
The crucial part which many people miss out is determining the amount which they can easily invest in their down payments. Down payment is like the principal amount you need to pay before getting any loans. Also, keep a check on your gross salary and how much you can invest in buying a new house. The riskier you are, the more difficult it would be to get loans at good interest rates.
Once you have finalized your budget, go and step into the market to get per qualified for loans.
- Check your finances and credit score before buying a house:
You can miss this step if you are paying your entire house amount in cash.
But if you are someone who needs funding for your house as a loan then this step you cannot afford to miss out. Your credit score and credit report is something which plays a major role in determining your financial status to the lenders and lets them know how safe it is to lend you money for your house.
Your credit report has all the information regarding your loan history, number of bank accounts you own, your balance, your payment history and every other information regarding your account. This lets them know how accessible you are to pay back your loan.
And your credit score is a number which is more or less similar to your credit report, but it is an actual number which determines your financial stability of the past. If your credit score is strong enough then getting a mortgage is quite easy and will save you a huge amount by getting loans at minimal rates of interest.
- Find a trustworthy real estate agent:
The real estate market is flooded with doped agents and brokers who just bluff their buyers and cheat them just to keep their companies flooded with money and afloat. So choosing one trustworthy agent among all the thugs is a bit complicated task.
Make sure to search the internet, read newspapers and make everything clear about market trends before settling down on one agent. Meet various agents, talk to your friends if they have the idea about any good agent, and try other tactics before settling on one.
Finding a trustworthy real estate agent could be of good help to you because they have knowledge about various open houses, market trends, and they’ll help you get a good house in your budget.
- Get per-qualified and find a lender before buying a house:
Getting your credit score checked is one important step. But you need to get a per-approval of your mortgage to show it to the house seller.
- Talk to various direct lenders, banks, or maybe other lenders;
- Compare interest rates of all the lenders;
- Talk to your family, friends or neighbours if they have any contact with a healthy lender who can give you a discount in any way;
Just don’t settle on one, make research and just crave until you are not sure about it.
- Check for all the plans, all the properties:
Go and have a home tour of all the properties that your agent is talking about. Have a good tour of home, make notes or maybe record video of the house so that you can discuss and compare it afterwards.
- Make inspections of the house:
Don’t skimp on inspecting your dream house, because you are paying a huge sum of money so getting a house properly equipped with no drainage leakages is a must. You might think that you have made a house tour on your own and checked on all the major details but it might be the case that you’ve missed out minor issues like pipe leakage, electrical fitting issues, or maybe dampened walls. If such issues are found, then you can ask the seller to fix the issues before you buy, or compensate prices for the issue.
- Go, close the deal and move in:
Close the deal with all the per-required paperwork. Make sure the seller is loyal and check all the paperwork before you pay for your house.
Once you are sure that you have considered all the measures you are the all set to move into your new house and adorn it with love to restart your happy life.