What to do when buying your new home
Buying your new home is one of the biggest investment that you will ever make. It is important to put some thought on it.
Following these steps we have outlined for you and you shall have a better experience when buying your next home.
1. Get ready.
Homeownership is more expensive than renting because you’ll be responsible for home repairs, utility costs like water and electricity bills. You’ll also need to pay for taxes and insurance related to your home. If you are not financially prepared, you may end up with an bad experience.
You should take the time to clear your debt like credit card debts before you purchase your home.
2. Polish your credit history
Having a stable career would increase your chance of getting your home loan approved as banks love to lend to those with stable jobs and the ability to service the loan in the long run. A typical 3 to 6 months of salary history would be sufficient.The same goes for the credit history. A person without a credit history would find it harder to get a home loan approved than the one with a credit history, be it a credit card or a car loan history, so it’s not all bad to borrow a little after all.
3. Start looking for a home loan
Many do not know this, you can actually get pre-approval for a home loan before you begin shopping for a home. This will help you to look within your price range.
Your local bank may have options that will save you money. You may start looking for your new home once you secure a home loan.
4. Find the Best Payment Options and Loan Types
When it comes to your home loan you may be surprised at the different loan types and payment options available. Usually a 20, 25 or 30-year loan are the best options. These terms normally offers the lowest interest rates. A higher initial payment or, down payment will also save you additional interest costs in the long run.
5. Find a Good Home with Good Location
Once your home loan are pre-approved you should find a home with good location. The location should be close to amenities such as grocery stores, hospitals, plenty of schools and close to major highways or transportation, as well as your work.
You are welcome to look for us if you need further help. Just schedule an appointment with us.
