Things that First Time Real Estate Buyer should be Aware of
So family and friends have been telling you that you should buy your first new house, right? As you busy weighing the pros and cons of the idea, this article would try to help you understand what it takes to buy a new home.
1. You must be ready to stay put at the new place for at least 3 years. From cost perspective, the high cost makes it impractical to own a new property if you can stay there for only under three years. And if you choose to sell away the new property within this short time frame, you very likely to end up poorer due to the high transaction fees charged on buying and selling a home. It does not matter if it is a rising or falling market, it is going to be a losing game for you. In fact when price falls, it is a double whammy as you not only have to foot the charges related to buying and selling, you will suffer from lower property price as well.
2. Boost your credit rating Before you head to the bank for your mortgage application to buy a house, make sure you have an impeccable credit report. When you spot problems on the report, make an effort to correct and fix them. Your credit report would play a big part in deciding if a lender is going to grant you the loan.
3. Is your dream home within affordability? As a general rule of thumb, most lenders are happy to lend up to 80 percent of purchase price. But to have a better idea on the kind of loan amount you can be approved on, make use of those online calculators at the bankers' sites to check this in relation to your income, debts, and expenses.
4. Size of down payment As mentioned above, banks expect you to put up at least 20 percent of purchase price. When you are not able to pay that amount, you may have to talk to some other lenders like the sub-prime folks.
5. How accessible are public amenities and facilities for the family? This is probably the one most important factor the market look at. This is because property that is strategically located is a top choice for many home buyers, so this will allow you to add value to your property when it is time to sell.
6. Enlist the help of property agent While Internet is useful disseminating valuable information like home listings, when it comes to a time to follow up, like physical home inspection, negotiating terms and price, human type interaction cannot be avoided. It can be a good idea to get help from exclusive buyer agent as they can help to take care of all these hassles on your behalf and acting on your interest.
Finally, when you choose to go ahead with the house hunting, get ready for some serious work. Always do a background check on the property that interest you, before you get to meet the prospective seller or the representative. You would want to find out the sales trend of similar housing type in the nearby area. Check the most recent transacted prices. This way you will walk into the negotiation confident and talk your way into buying that dream home of yours. - 23199
1. You must be ready to stay put at the new place for at least 3 years. From cost perspective, the high cost makes it impractical to own a new property if you can stay there for only under three years. And if you choose to sell away the new property within this short time frame, you very likely to end up poorer due to the high transaction fees charged on buying and selling a home. It does not matter if it is a rising or falling market, it is going to be a losing game for you. In fact when price falls, it is a double whammy as you not only have to foot the charges related to buying and selling, you will suffer from lower property price as well.
2. Boost your credit rating Before you head to the bank for your mortgage application to buy a house, make sure you have an impeccable credit report. When you spot problems on the report, make an effort to correct and fix them. Your credit report would play a big part in deciding if a lender is going to grant you the loan.
3. Is your dream home within affordability? As a general rule of thumb, most lenders are happy to lend up to 80 percent of purchase price. But to have a better idea on the kind of loan amount you can be approved on, make use of those online calculators at the bankers' sites to check this in relation to your income, debts, and expenses.
4. Size of down payment As mentioned above, banks expect you to put up at least 20 percent of purchase price. When you are not able to pay that amount, you may have to talk to some other lenders like the sub-prime folks.
5. How accessible are public amenities and facilities for the family? This is probably the one most important factor the market look at. This is because property that is strategically located is a top choice for many home buyers, so this will allow you to add value to your property when it is time to sell.
6. Enlist the help of property agent While Internet is useful disseminating valuable information like home listings, when it comes to a time to follow up, like physical home inspection, negotiating terms and price, human type interaction cannot be avoided. It can be a good idea to get help from exclusive buyer agent as they can help to take care of all these hassles on your behalf and acting on your interest.
Finally, when you choose to go ahead with the house hunting, get ready for some serious work. Always do a background check on the property that interest you, before you get to meet the prospective seller or the representative. You would want to find out the sales trend of similar housing type in the nearby area. Check the most recent transacted prices. This way you will walk into the negotiation confident and talk your way into buying that dream home of yours. - 23199
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posted by X - Men @ 5:56 AM
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