The thought of buying a new home seems very exciting to most of us but only a few people know that it’s quite a nerve-wracking procedure as it demands several stages of research and sensible planning. It is everybody’s dream to own a personal beautiful home where they can live up their dreams and spend their days of golden age resting carelessly and enjoying peacefully. But the achievement of this dream goes through a long road trip of challenging obstacles that only a few have the courage to overcome. Whether you are investing in a new home for the first time or have been already apart of the buying-selling community lay your back and rest assured, as we have summarized the entire key-factors of a hectic home buying procedure into a minimal set of points.
Evaluate Your Assets
The second factor is to evaluate your assets and having an eye open on your savings. This means that you should calculate your financial resources, income, and savings twice which will help you realize whether you have sufficient savings to afford a house on your own or whether you would need a loan from the bank. Put your “needs” before your “wants” this certainly means to put your essential and primary needs first (eg. An economic small house to suit your lifestyle) so it would be easier to pay back the loan and make your ends meet, rather than thinking of luxury and placing your secondary demands at the first place on the list (eg. buying a big mansion despite a lower income).
Choose The Best Mortgage Plan
After you know where you stand you can now go to different banks and ask for their mortgage policies in detail. Nowadays banks offer a lot of mortgage options to suit people of every budget, each one of them has its own set of offerings, terms and eligibility criteria. Here are a few down payment options to suit your financial status and preferences.
- Conventional mortgages- permit down payment as low as 3%
- Federal housing administration loans- permit down payment as low as 3.5%
- Veterans Affairs loans- which doesn’t require any down payment at all.
Remember, applying for a bank loan you will need up-to-date proof of finance and documents from your bank to approve the loan. Another thing not to neglect is the down payment amount you choose will affect your monthly mortgage payment and interest rate.
Hire A Broker & Advocate
These are just the initial baby steps towards accomplishing your dream of owning a personal home. Since many of us don’t have any appropriate experience in the real estate industry it is very important to hire a reliable advocate and a real estate agent that can guide you through the ups and downs. Be honest with your agent and discuss your needs, the type of home you are looking for, your financial budget for a home, the type of neighborhood you would prefer etc.
Evaluate Additional Costs
In addition to the purchasing price of the property, there are also several expenses to consider. These include the booking deposit, which is usually 2-5 percent of the total purchasing price. The second included the cost to keep in mind is the stamp duty, for which the payable rate varies to the purchasing price of the property. Then there is the solicitor’s and the realtor’s fee that you have negotiated. There may be many other underlying hidden charges as well so you better get prepared to get a clear vision of the actual long-term cost.
There are many other factors to review while choosing an economic place for residence and make sure you discuss them with your estate agent. These include the average travel distance from metro stations, bus routes, schools, hospitals, workplace etc. Be sure to do a trial check as this will affect your commute costs.
Negotiate And Sign The Contract
When you make your decision inspect the house just to make sure the in-house condition is worthy enough for the asked price. Step into each room and review every aspect from floor tiling to paint finishing, plumbing, storage options, toilets and so on. Don’t make a mistake to withdraw just by hearing a pricey word by the owner. Just because sellers can demand any price they want doesn’t mean the house will sell for that price. If you are not happy with something then you can negotiate the price or ask the seller for repair rather than blow the deal away.
While keeping in mind the rough challenges and the preferences of every potential home buyer we have sought out these factors with a discerned observation. Now that you have learned the crucial tips to follow when buying a new home you should never forget to keep in mind these essential features if you want a fruitful result.