Your home is probably one of the biggest purchases you ever make. It’s one of the most complex too. In order Generally, people make mistakes when it comes to purchasing home, they don’t do any research and rush in and buy, and are left to deal with the consequences. Before purchasing a home, you need to do research, consider the decision, not an emotional one, think logically, and then buy a home.
Read to buy a home? From figuring out pricing to why you should consider real-estate agent, here we have created a free ebook- the home buyers guide.
- Carefully consider the type of property you can afford: The very first thing you need to do before you start looking at property, make sure you know how much you can afford. That doesn’t mean the maximum you can borrow; it means the maximum you have purchased to pay each month. To determine how much you can afford, use the 36% rule, which states your monthly mortgage expenses and other debts payments shouldn’t exceed 36% of the gross income. For example, if you earn $5,500 a month and have $5000 existing debt payment, your monthly repayment amount would be $1,480. To check your affordability, you can also home purchase affordability calculator.
- Use a trusted real estate agent: With such a big purchase, it makes sense to surround yourself with experts. Here a trusted and experienced real estate agent who finds the best property for you and works with the mortgage broker to ensure your finance is structured to meet your needs, and talk to a financial advisor to decide how much you can afford as per your current gross income.
- Negotiate as much as you can: As a buyer, you should feel in control, and as though you have nothing to lose through robust negotiation. Ensure you negotiate as hard as you can. One of the primary things you can successfully negotiate as the first time buyers is the closing cost. You can ask the seller for a credit to fix certain issues in the interest of offsetting the closing cost.
- Safety: Safety is one of the most important factors you should consider while purchasing a home. Just to save a few dollars people buy a house on the outskirts of the city. It is advisable to not live in an insecure place. Before purchasing the property, you should have to inquiry the crime rates.
- Get Pre-approved home loan certificate: Although the general tendency of the people to apply for a home loan after finalizing the property. But, now people have started applying for the pre-approval home loan. A mortgage pre-approval can be useful to get the best property and ensure seller than you are an ideal buyer. This approval implies your repayment capacity. The most significant advantages of the pre-approved home loan are that it lets you plan your finance. You get a clear idea of how much you can afford. This helps you to look at the property, which perfectly matches your requirements.
- Don’t let yourself feel pressured: Always keep in mind, real estate agents are the salesperson, and they are working for the vendor. It’s usually in their interests to get a quick sale at the highest price. To achieve this, they make pressure and insist you buy a property if you feel that a real estate agent is putting pressure on you, just back it off.
We hope this ebook on home buyers guide will help you in buying the right property and make your real-estate investment hassle-free.