Hello World! Welcome Friends! Are you buying a home for the first time? If yes, then there are many things you have to do before you finally start looking for a house of your dreams. Buying a house brings a lot of your financial stress on you if you are doing things on a credit. If you have money saved then remember it’s your hard earned money or your lifelong savings. So before you start looking at bay windows and wrap-around porches, here are some things you really need to do.
Credit and Mortgage
Get your credit reports in line. If you are going for a mortgage, then the interest you’ll have to pay heavily depends on how creditworthy you are for your bank. That means that you have be in the best and dependable light. Order all of your credit reports a year before you start looking for a house and fix any mistakes you find.
Matters of the Law
Before you buy a house in a certain place make sure that you know the law of that area. If you are buying house from another owner, make sure that the property is legitimately registered in their name. If you are buying from a property developer, make sure that there are no added clauses in the title deed that restricts your ownership in any way. A good way of dealing with all this is to hire a dependable law firm such as Prime Lawyers. These firms are always at your back and let you know about all the law related issues there are to a certain place. They can also help you with the required paperwork and government-based registry procedures.
It is really important that you set a budget before you go for buying a house or mortgage it. Experts say that it’s a good rule to make sure the house you are buying doesn’t cost you more than 2.5 times your yearly salary. For Example, if the household income is around $100,000, then $250,000 should be your max.
Types of Mortgage
You also need to figure out which type of mortgage is best for you. Whether it should be a fixed-rate one or an adjustable rate one. In a fixed-rate loan, the payment and interest rate stays constant for the complete loan. This usually lasts for 15 or 30 years. In an adjustable-rate mortgage there is a fixed interest rate that can reset after a certain period of time. Experts say that that if one can afford a real estate property only if one gets an adjustable-rate mortgage, then the buyer can’t really afford that property.
The Down payment
Figure out the down payment you have to pay the bank. Most banks usually go for a 20% down payment, but first-time homebuyers can also qualify for an FHA loan and in that case you would only need around 3.5% down payment. We also think that it’s a good measure if you get pre-approved by your bank. Remember that your money lender will consider income, credit history and assets and only then you will be able to borrow a certain amount of money.
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