First published: 23 January 2021 @ 7:50 am
When you decide to buy a house, the buying process can be stressful. You’re going to be signing a contract that you’re probably going to live in for the next several years. Here’s where buying house tips come in handy.
That’s why it’s important to have some basic knowledge about what you’re getting into before you start looking at houses. Here are seven buying house tips you should know:
1. Get pre-approved for a mortgage.
Before you start looking at houses, get pre-approved for a mortgage so that you know how much money you can spend on your home purchase.
A good mortgage lender will go over all of your financial information with you and give you an idea of how much money they will loan you and what interest rate they will charge.
When it comes time to find your dream home, this knowledge will help prevent heartache if the home is outside of your price range or if it’s not as large as the one in your dreams.
2. Determine how much money is realistic for your budget.
When deciding how much money to spend on a house, figure out what type of house is realistically within your budget based on the amount of money that is available for a down payment and monthly payments (such as insurance and taxes).
For example, if you have $40,000 for a down payment and $1,000 per month for a mortgage payment, then you probably can’t afford a house that costs more than $200,000.
3. Decide what you want in a house.
Figure out what features are important to you in a house and what is negotiable. For example, do you want an open floor plan or are you okay with separate rooms?
Do you want hardwood floors or will carpeting work? Will you need an attached garage or can the garage be detached?
If the cost of adding these features will make the home too expensive for your budget, then be prepared to compromise on some of your wants.
4. Shop around for the best interest rate and lender.
When shopping around for lenders and interest rates, ask about their fees and how long it will take to close on your loan (from the time that you submit your application until the time that you get your keys).
Lenders also have different rules about how much money they’ll lend based on income and credit score so shop around until you find one that’s willing to give you enough money to buy a home in your price range.
5. Know how much you can afford in a monthly mortgage payment.
You don’t want to buy a house that you can’t afford. The more money you spend on your mortgage payment, the less money you’ll have for things like groceries, clothing and savings.
You should also consider how much your property taxes will be and how much it will cost to insure your home.
6. Figure out what kind of closing costs you’ll have to pay.
When buying a house, you’re going to have to pay some closing costs (such as transfer taxes, title fees and attorney fees). You should ask the seller about these costs so that you know what they are before you make an offer on the house.
7. Don’t get emotionally attached to a house before making an offer on it.
It’s easy to fall in love with a house but don’t make an offer until you’ve done enough research about the property (including checking for any defects) and done enough research about the seller (including checking their credit score) so that if something goes wrong during the buying process, it won’t affect your decision-making abilities or your ability to get financing for the home purchase.
For more tips on how to buy and improve your house, check out our blog, HandyWork!