Things to Think About Before You Buy a Home
Posted on Jan 24, 2011 | Category: Managing Your Money
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Hello Elkridge Patch. This is my 1st blog in a while. I have been very busy growing my Real Estate Business and Family, but I am back.
I hope you enjoy my post and please let me know if you have any questions at all. This blog is about What you should know before you buy a home.
1. Home-buying as a long-term commitment.
Not for a couple years, unless you plain on making it a rental property. Plan to live in or own the home for at least 7-10 years. Please keep in mind some loan require you to live in the home.
2. Ask yourself some questions before you buy.
Buying a home will be one of the biggest purchases in your life. Make sure matches your lifestyle goals:
- Are you going live there alone or with a family? How many bedrooms and baths will you need in the near future?
- Do you need a house with a yard for growing family, garden or your beloved four legged family?
- Do you mind up keep of a home, mowing a lawn or is condo more your style?
- How far do you want to travel to and from work each day?
- What are the five must haves in your new home? (garage, great room, kitchen, fence yard, so on)
- Are you an city person or do you like suburbia or counrty?
3. Good Credit Helps.
Today's historically low interest rates might entice you to get into the real estate market.
Take some time making sure your credit is in shipshape to get the best rates. You can check your reports free once per year at www.annualcreditreport.com.
Did you know a 1% difference in a $200,000 mortgage can cost you more than $45,000 in additional interest over the life of a 30-year loan. Also the lower the interst rate the more buying power you will have.
4. Focus on what you can afford.
Make sure you pick a good lender. Lending is one of the most important parts of purchasing a home. Lenders will check your debt-to-income ratio. This is how much money is coming in versus going out in debts. You don't have to spend as much as a lender says you can. Make sure you will be comfertable with the payment along with the life style you still like to live.
5. Build a move-in fund.
In addition to your down payment (varys on type of loan, VA FHA,Conventinal), you'll need to cover closing costs (some times you can get some help from the seller) furniture and other stuff like a lawnmower, for example. Do not make any large credit purchase while in the home buying process. They can wait till your in the home.
6. Home Warranty
I always suggest to my clients to have a home warranty when they purchase a new home. The last thing you want after purchasing a home is to have worry about having to fix or replace something major in the home. In many cases you can ask for the seller to provide a warranty in the contract of sale.
7. Home Inspection
A home inspection is always a good ideal. No matter what type of home style or price point you are purchasing. You can even have inspections with As Is homes. Guide lines vary on all contracts.
Hope this is good food for thought. Let me know if you have any questions. I am never to busy to help or new clients.