Buying a house or any property can be a dream come true. It is, mostly accompanied by a lot of excitement that could be dangerous if not tamed. Out of the pure joy and adrenaline rush of owning a house, most buyers’ judgement tends to be clouded by emotions and end up making costly mistakes.
Purchasing a house is a huge step. It is very crucial to assess your state of finances, the situation at hand, and make decisions based on those and not your heart. Lowering your chances of committing mistakes and irreversible decisions will go a long way in helping you save.
Here are some tips that you could use to avoid overstretching when buying a house…
Do a Market Survey
The first good deal you get could not be the best deal you could have found. It is important then to ensure that you have done a thorough market survey of houses and mortgage deals. Different lenders, like different houses, offer contrasting deals. When you have done your homework well, it is much easier to negotiate a better deal. The best interest rate from your mortgage lender is as crucial as getting the best price for the house you want. Ensure your realtor has all your preferences in a house. Also, Look for price quotations beyond what your agent is telling you.
Come up with a Budget
As earlier stated, buying a house is an exciting process. You may think you know your dream house until you get into the market and see the houses on offer. To avoid feeling discontented, it is imperative, then, to have a budget that has taken into consideration your income and financial obligations.
Also, remember that the cost of buying a house is not limited to the house price alone. Other financial obligations include interest rate, agent fee, lawyers fee, cost of repair, stamp duty and many others. In case the math seems a bit challenging, an online budget calculator is a good solution for you. Stay within the budget at all cost.
Do in-depth Research and Inspection on the Property you Have Chosen
Inspection of the house you pick is vital. Your realtor with you should check out the whole property and identify what needs repairing. Look out for paint variations on the wall. They could indicate covered up cracks. It is important to estimate the cost of repair before settling on the price.
Any house has a lot of documentation to it. Before signing a cheque, inquire of the ownership of the land on which the house stands. Also, check if there are any future government projects near the house and the house’s documentation in the housing department. It is important to avoid future fines and legal problems.
Get the Financing First
Most buyers look at their credit score and decide to go house hunting before approaching their lenders. It is a dangerous thing that could easily get out of hand if you sign a purchase agreement before your mortgage is processed and approved. Your lender’s willingness to offer the financing depends on various financial factors. A sudden change in your financial engagements could change their willingness. To avoid being liable to pay for a purchase that you cannot afford, you must get the financing first before committing.
Take your Time
Unless you need to move immediately, do not be in a hurry to buy a house. You need to take the process into much thought as it is a big decision in your life. Avoid making emotional decisions. Take your time walking around the locality of the house. You may notice that the bus stop is too far or there is some noise nuisance around the area. Inquire about things like security and community projects around the area. If the answers you are getting are satisfactory to you, then you can go ahead. Better slow but sure.
As much as buying a house is tedious, it has a very nice feeling to it at the end. You become a property owner! Since it is that important, it is good to do it right and have the best experience out of it. Fend for your finances and ask for information before committing.
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