Top 10 Things You Must Know when Buying a New House
Top 10 Things You Must Know when Buying a New House Buying a home can be an overwhelming and exhausting process actually as well as emotionally. Locating the perfect abode is not an easy task but there are many things you can do to improve your chances of making a right choice. Here is a list of the very best 10 things you must know when buying a new home: 1.) Affordability -- Before you take the first step in the direction of buying a new home, it is important to know regardless of whether you can afford it, and if the answer is yes then what is your budget range. Setting a price range helps you streamline your research, so you can look at homes within your budget. A good guideline you can follow is to find 2.5 times your own annual income (2.5 x yearly salary). Home loan EMI, utility bills, child's education, and other household expenses are some of the considerations to consider before environment a budget for your house.
2.) Visit the house at different occasions - Mornings and afternoon hours will be the best time to look at a house. There is maximum natural light
at this time, which allows you to closely examine every nook and part of the house and look for potential problem areas. Once you have shortlisted a house, do go to it during night hours to get a feel of the neighborhood and the overall ambience of the area. A seemingly calm and peaceful home street may turn right into a noisy, uncomfortable region during evening hurry hours. 3.) Great Schools - Whether you have kids of your own or not, having great schools nearby can perform wonders to the worth of your house. Buying a house in a good college district will not only boost the value of your property, it will also make your house much more saleable. A lot of families are prepared to pay a premium cost for such homes. 4.) Inquire about the neighbors - When you decide to live in that dream house of your own, you would obviously want to be surrounded by positive as well as nice people as well. To ensure this happens, it's imperative that you inquire about the neighbors and try to understand them better. A lousy neighborhood may become the bane of the existence, even if the home is perfect for you.
5.) Credit Score - After you have decided to buy a new house, the first step is to take a good look at your credit report. Whether you apply for a personal loan or a standard one, it is important to possess a clean credit history. Get copies of your credit report and try to fix any kind of errors that you might discover. A good credit score significantly enhances your chances of getting a loan. 6.) 20% Down Payment -- If you are planning to apply for a regular loan, you will need to create a 20% down payment of the total value of your house. This is actually the standard rule for all banks and monetary
organizations. However, in the event that making this payment is tough for you, don't fret coz' there are a variety of federal and state loans that only require 3% down payment. 7.) Get Pre-Approved - It is a good idea to get pre-approved for a loan before you even start looking for houses. This allows you to confidently go and look for houses that match your needs and are affordable. You will also be in a much better position to make a last offer once you just like a house and do not have to worry about finances. Pre-approval from a financial institution is based on your actual income, debt background and credit score. 8.) Professional Help - Though the Internet can provide access to house listings and can help you find the right home, it is still advisable to hire an agent. An experienced real estate agent can help you in more methods than you can imagine - from finding the right homes for you to negotiating the price with the sellers, an agent can be the best manual when it comes to buying a new home. 9.) Home Inspection - While your own bank will get a home appraisal done to assess the house you plan to purchase, it is generally not enough. You should hire a home inspector separately who will look at the house closely and point out potential problems or defects. Generally you can get the seller to correct those defects, or get him to reduce the selling price accordingly. Getting a house inspection can also help you save from making a pricey mistake. 10.) The Right Bid - So you have finalized a home, and need to make an offer? Always remember your opening bid should be 8-10% less than the seller's price. Additionally do your homework well - discover the current market price and the rate at which have similar houses been sold in the past Six months. Take all this into account before making a bid.These are a few things you must know as well as pay attention to when buying a brand new house. Just adopt a proactive strategy and remain meticulous - and soon there is a perfect home to your requirements!
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Published on Jul 17, 2011
Buying a home can be an overwhelming and exhausting process - actually as well as emotionally. Locating the perfect abode is not an easy tas...