How To Buy A House Without Losing Sleep Over Money
When it comes to buying a house, the main intention is to find a house that you’d like to live in while trying to get the best financial deal possible. It’s a rather understandable goal and something that all of should strive for but in the end it doesn’t end up like this. The main reason for this is our tendency to let our emotions rather than our logical mind take the final decision. Pre planning and careful evaluation of options is the key to finding the house of dreams without spending a fortune.
To get started, you must figure out your budget. How much money can you spend on buying a new house without going bankrupt? The easiest way to do is to approach a mortgage broker and get pre approved. They have something called as a mortgage in principle, which is a set amount that the financial institution will readily lend to you. Even if you don’t understand financial jargon and have never taken a loan before it’s not difficult to understand the premise. If they feel they can trust you they will give you the money.
In the case of a mortgage, everything depends heavily on your credit ratings. The rule of thumb is that the higher your credit rating, the lower your down payment and the subsequent monthly payments. To maintain good credit, stop applying for any loans or accruing any large debts a year before you want to buy the house. You must also make sure that there are no errors on your credit report. If so, get them fixed as soon as possible. Getting a smaller mortgage obligation will go a long way in keeping your costs in check.
The lending institution also wants to make sure that you don’t live from paycheck to paycheck and that you can afford to pay a few months worth of mortgage payments if necessary. This is why you must save money and keep it all in one place to prove to the lender that you are well planned for the future. Again this goes a long way in lowering your payments to the lending institution.
Another great way to save money is to hire a good real estate agent. Sure he or she will charge you a nominal commission but in return they will be able to show you properties that fit your needs and budget. At the same time they will be able to accurately estimate how low the seller will go on the asking price. An experienced real estate agent will happily haggle with the seller for you and attempt to reduce the asking price.
A seller on the other hand will be easily persuaded by a real estate agent who is an expert in the market than by a novice whose buying his first house. This is why in today’s market the importance of a good real estate agent is paramount. If you’re looking for a real estate agent in Preston Park, click here.