Are you thinking about buying a house? There are many issues buyers face when making real estate decisions. But, these issues can be easily avoided with a little research and planning. You may wonder if you should seek advice on the topic or do it all by yourself. There are some things you should understand before you spend your valuable time and money.
Respect Your Financial Reach
The first and foremost fact is that you should buy in and under your financial reach. Prepare for the buying. Avoid falling for a house that is ‘oh so well’ out of your reach, and then trying to make it work financially. Decide your budget first and then buy the house that follows the budget. Impulsive buyers should take care to not over reach when buying. A good precaution would be to get a pre-approval before buying a house. That way you know your limits well.
Beware Of Your Financial Situation
Avoid ignoring the reality, bad credit ratings should not be hidden or covered and should be reported clearly and transparently along with debit and credit cards, or else, these problems will never stop haunting you. Lenders have a procedure of contacting credit reporting agencies and their debt records before they approve your loan application. If your financial ‘report card’ is too bleak, you may never get the loan.
Your assets are not a substitute for your income. Your monthly budget, derived from your salary, for your new home should have enough space that you can pay your monthly loan payments from your salary and not from your assets. So focus on your income earning potential for the payment and not your assets, for this part of the deal.
Find a qualified real estate advisor, as the agent who is selling the original owner’s house is going for the best price himself, he can take advantage of you. So have an expert on your side to call his counter proposal. These people do not come cheap but with their professional advice on infra-structure, surrounding area, age and growth potential for a property makes it easier to decide whether to go for a property or not.
Carefully select your broker and lender. Find a person who pays attention to your requirements and don’t run blindly after the lowest rates.
With a little care, your experience of buying a new house can be all you ever wanted it to be and not a nightmare and a potential expensive financial disaster.