Investment Consulting

Saturday, January 25, 2014

Tips for Buying a Home

Tips for Buying a Home

If you are considering buying a home it is important to determine how much you can afford and are willing to pay to own it. In addition, it is important to determine the selling price of a similar real estate property in your region.

There are many websites which offer important information of how much you can expect to pay. You also need to calculate the monthly housing cost you are likely to incur, including the homeowners insurance and taxes.

This is important because in some areas the insurance and taxes payable can double the mortgage payment. The tips to consider when buying a home include:

· Long-term stay

If you are not committed to remain in a single place for at least 5 years, then buying a home may not make good financial sense. The transaction costs involved in buying and selling property could result in you losing money in the event of selling any sooner- in spite of a rising market. This could even be worse with falling prices.

Tips for Buying a Home

· Affordability

It is advisable to consider buying a home that you can afford. Experts recommend the buying of a house that is about two and a half times your salary, annually. Furthermore, you can make an informed decision when you use an online calculator to determine how your income, expenses and debt affect the home you can afford.

· Clean-up your credit

It is very likely that you will need to get mortgage to buy your home. Therefore, it is advisable to make sure you have a clean credit history. Several months before looking for a house to buy, get your credit report and take the time to make sure all the facts are right, while fixing any problems. A good credit report has the ability to get a mortgage at competitive rates.

There are many private and public lenders who are willing to offer low interest mortgage to customers with a good credit history. In case you cannot afford the usual 20% down payment, many of these lenders will be ready to qualify you for a loan for a smaller down payment.

· Local amenities

It is important to find a home located in an area with important social amenities and infrastructure, such as roads, water, electricity and retail stores. Even if you do not have school age children, it is important to choose a home located in an area with good schools.

The reason being, many home buyers consider the quality of schools as a top priority when buying homes. Therefore, when the time comes to sell your home you will be able to get a better deal.

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