Just like how we think we want to buy a new outfit to wear we cannot buy a house just because we feel like getting a new one. Unlike buying an outfit buying a home is more costly. There are few things that should be considered before making such huge decisions which involve a lot of money. First of all the most important thing to take care of is being informed of everything. Let’s see what are the factors you should consider before thinking about buying a house.
What is your credit score?
Your credit score is a major factor to be considered if you’re planning to go for a loan. It is better to be aware of your score before applying for a loan. If it is low take your time to repair and refuel it. If you have a great score it will guaranteeyou will get a lower interest rate. It can save you slot of dollars over the entire loan period. A good credit score will give you better loan terms.
Can you get a pre-approval document?
Through this document you will be able to get a hold of a loan as long as no changes occur in your financial position.This document comes in handy when there is competition amount few buyers for the house you expect to purchase. The first thing a seller will ask for from a buyer when they contact them is how capable they are to make a purchase. This pre-approved document is the evidence you can provide for these situations.
Can you note down all the expenses?
There are quite a lot of fees that pops up when you are expecting to buy a new house. There is not only the mortgage but there will be some repairing to do, what about the insurance? Then there is property taxes and also association fees. Don’t forget that you must be capable to handle all these expenses throughout the years and you must have a sufficient budget. Don’t put out some cash aside increase of an emergency occurs.
Are you sure about what your looking for?
Many people mix up condos for houses. And many otherswants some of both and look for those in the market and then there are some who doesn’t know the difference at all.Especially first time buyers.A condo is more restrictive than a house and mostly a condo is for people who don’t have time for house maintenance. In order to finalise the decision you must research on the pros and cons of condos or study surveys conducted by experts on condos vs houses.
Now you are aware of basic things required to do prior to purchasing a house!