Okay, so buying a home is a pretty massive investment. It is most likely going to be the biggest investment you ever make (unless you win the lottery and decide to buy a mega-yacht). However, before you simply pull on your bathing suit and dive into the bountiful existence that accompanies home-owning, there are certain things you need to do regarding preparation first. But don’t worry, we’re not going to let you figure what these are on your own. Nope. That is why we have compiled some advice from the experts on what steps to take before shelling out on your nice new home.
Your Credit Rating
While the world economy has recovered from the meltdown of 2007 and a brave new world have risen up, there is still a universal rule that you should know about and consider. The better your credit rating the lower your monthly payments will be. That’s a good thing. But don’t worry, there are ways to improve your credit scores. First off, speak to experts in this field, like CreditRepairCompanies.com, and see what strategies they can help you put in place. Another thing you can do is get hold of a copy of your credit rating. A lot of people get unfairly penalized for debts that have either been paid or no longer exist, so make sure that your credit rating represents your current situation.
Know Your Limits
All too often, people buy a place at the very top of their limit. They push the boundaries. They go with what the maximum they can afford instead of what will let them live a comfortable life. To ensure you do this, try and make sure that your mortgage repayments don’t exceed a quarter of your gross monthly income. And don’t get caught out either. Weigh up what will happen if interest rates rise, and any taxes associated, as well as the cost of running the house, including all utility bills. This will ensure you don’t start to feel the pinch should anything happen and will be able to come up with financial solutions to a myriad of potential problems.
Grow Your Deposit
The more you can save up and put down as a down payment the better. That’s not just because the lender will take in what you are risking in terms of funds, but because you will be able to reduce the amount you are borrowing and thus the amount you will have to pay back in interest rates.
Concentrate On Your Savings Account
Just as important as building a health deposit is the idea of building a savings account, and that is because it will show any possible lender that you are not living paycheck to paycheck, end of the month to the end of the month. Basically, the more you have the kinder you will be looked at because you will be less of a risk. The experts at http://www.bankrate.com/finance/mortgages/ recommend you aim to have about three to five months worth of mortgage repayments saved up.
Look For The Issues
Most houses have issues, so make sure you look out for any every time you look at a prospective property. It could be using your nose to sniff out any mold. Or seeing if there is any visible damp on the ceilings. Perhaps knocking on the walls to see which are hollow and which aren’t. Have a look around the property to see if there are any visible signs of pests lurking. What about the plumbing? Does the toilet flush properly, what is the water pressure like in the bath, and the shower? When was the boiler installed and checked, or the air conditioning for that matter? The more you can check on your first visit the better.
Use The Professionals
This could be real estate managers or estate agents. It could be home inspectors. But the more professional people you get involved from the get go the better chance you’ll have at pinpointing any issues that could end up being costly in the long run. Also, make sure there is no conflicting representation. For example, let’s say you’ve employed legal representation. Ask if they are representing the seller too. It would be inadvisable to stick with them if they are.
Your Head Is Smart
Your heart is not. So while your heart may have fallen in love with somewhere, and turned all your possible questions into positives, make sure your head agrees. Somewhere could be tiny, a lot smaller than you’d hoped for, but your heart will say it is cozy. The third bedroom may have low ceilings, to which your heart will say, “well this can be the kid’s room.” So listen to your head. There will always be other properties, so don’t sacrifice what you shouldn’t be sacrificing.
It doesn’t matter if it is you doing the negotiating personally, or if you have hired an agent to take over all the negotiations for you. What matters is that you negotiate and negotiate well. We recommend you are present at all negotiations, just for peace of mind. An agent is experienced, but they won’t push as hard as you will. You are the one spending the money so you will want to ensure you spend as little of it as possible. You have the passion, so take control and get a good deal.
Ignore The Pressures
It is important you remember that agents are just salespeople. They are designed to close deals, and they will do everything they can to get you to close on the deal. They’ll say that the perfect property is about to get snatched up and has a hundred people ready to view it. Ignore this. Don’t feel pressured. If you do, then back away. You have time and you have money. It is so important that you remember these points at all times throughout the process. You have the control. They need you. Not the other way around.