You dream to buy a house?
Some Americans have grown disillusioned homeownership during the housing crisis, but the real estate market shows signs of recovery in many parts of the country.
Before buying a home, however, consider these five questions to assess your readiness.
Why I want to buy?
buy property simply because "everyone does it" or "it is the American dream" are not good reason enough to take a loan for 15 or 30 years ahead.
and while many people refer to real estate as an investment, not a guaranteed return. Real estate values fluctuate over time, and it can be difficult to predict what will appeal to buyers 5, 10, or 15 years into the future. That's why experts recommend buying a property you will enjoy.
Some people make money by flipping properties, but it is not for the faint of heart and requires a thorough knowledge of the local market and renovations.
Think about your reasons for buying a home so you can match your goals with the right property. Tweet this
Do I have my finances in order?
In order to qualify for a mortgage, you'll need to demonstrate a strong track credit and a steady income.
In most cases, you will also need a down payment. Mortgage lenders generally like at least 20%.
FHA and VA loans allow smaller down payments, but it can also mean a higher interest rate and pay for private mortgage insurance (PMI for short).
Several months before applying for a mortgage, check your credit report for errors. You may need time to dispute mistakes or work to improve your credit score so that you qualify for a mortgage loan or qualify for a better rate.
Some real estate agents will not show you the properties until you have a pre-approval letter in hand. This helps you and the agent to focus on properties that are within your budget.
Am I realistic about the market?
Some markets suffer from weak stocks, so that the properties are in a bidding war. Some have a surplus of McMansions but not many starter homes
Before you start looking seriously, do your homework and maybe attend a few open days to talk to a professional couple from the real estate on your expectations.
first-time buyers may need to lower their expectations to find something in their price range.
do not forget to take into account closing costs, property taxes, condominium fees and other costs in your calculations on the amount of mortgage you can afford.
Just because you pay $ 800 a month in rent does not mean you should get a mortgage that costs $ 800, because there are added expenses that tenants do not have.
How long do I plan to live here?
If you intend to own a property for a few years, then you may want to continue renting.
Even if the value increases ownership in this short time, costs such as legal fees or real estate commissions can eat into your profits fence.
This is why many experts suggest that you should plan to own a property for at least five years.
homeownership often makes the most sense for people who are considering moving into a long-term place.
Can I manage repairs and unexpected costs on my own?
When you rent a broken water heater or leaky roof is almost always the owner's responsibility. But when you own a property, it is your problem.
Make basic repairs yourself instead of hiring a handyman could save money, but there are often surprised expenses such as special evaluation of a condo association or a jump in property taxes that may inevitable
Make sure you have a healthy emergency fund to cover these costs
photo credit: .. ... via Piero photopin cc
0 Komentar