Buying a Property? - Consider this Checklist

Buying a Property? - Consider this Checklist

With interest rates hitting an all-time low, many first time buyers are considering ditching the rental and buy a new home. If you are vexed at the thought of throwing money away on rent, but aren’t sure if you can afford an apartment, the good news is that if you take the right steps with the help of sites like Property Guru, you can own your residence in no time.

With the combination of working within your budget, having a healthy credit score and understanding how the process works, that first house or apartment can be yours to start building equity. Your first residence may not be your dream place, but if you consider it a stepping stone to one day finding your ideal one, investing now just makes good sense.

checklist Buying a Property

Check your Credit Score

The key to owning a home is going to be your credit score. You can have a million dollars in the bank or make a million, but if you have an unhealthy credit score, then you most likely aren’t going to be able to obtain a loan. Your credit score tells the lender how reliable you are and how likely it is that you can repay the loan. That is why it is crucial to have a good rating. If you are below the standard score, it could cost you both in interest rate and ability to borrow. According to Forbes magazine, the key is to set a budget before you plan to search and buy one.

Have a Down Payment

If you save up for a down payment, not only are you more likely to obtain a loan, you can avoid things like PMI. It stands for Private Mortgage Insurance, and it is an additional insurance tax. Without a down payment, you can also be assured a higher interest rate because your loan will be considered less “risky.” The average homeowner should have 20 percent to put down on the purchase of their home to secure the loan. It may take a little longer to buy your first home and a bit more sacrifice, but it will come handy in the end and lend credence to your ability to repay the loan.

Location, Location, Location

Sure, it sounds like a cliche, but it is true. The location of your new home is going to be paramount says a contributor on the Houzz website, not only for your convenience and safety but to build equity. It is important to consider things like distance from work and the security of the neighborhood, but don’t discount other things like school districts. You may be nowhere near considering children in your life, but for resale value, finding an apartment in a highly rated school zone will increase the value of your home. It will also ensure that, when it is time to sell, you will get your money back plus more.

Be Realistic

Many first time buyers are ambitious about the amount of time they have to put into their first home while others want a move-in ready interior. Be realistic about what you can and can’t do and the costs associated with updating or renovating. There are times when paint will do the trick, but if there are structural issues, or the layout is questionable, consider moving along. There are a lot of homes to choose from, so be choosy and don’t take on too much work. If you are not an expert, don’t make the assumption that you will become one. Renovations can be a lot more expensive than you budget for, so just be realistic about how much you want to put in both physically and monetarily.

Consider Additional Expenses

Many first time buyers are ambitious about the amount of time they have to put into their first home while others want a move-in ready interior. Be realistic about what you can and can’t do and the costs associated with updating or renovating. There are times when paint will do the trick, but if there are structural issues, or the layout is questionable, consider moving along. There is a broad range of properties to choose from, so be choosy and don’t take on too much work. If you are not an expert, don’t make the assumption that you will become one. Renovations can be a lot more expensive than you budget for, so just be realistic about how much you want to put in both physically and monetarily.

Buying your first home is a very exciting time, but it can also be a very stressful one. Make sure to stay within your means, make smart choices about your credit rating, and have some padding in your budget for the unexpected, and things should proceed smoothly. In the end, you may not have the home you always dreamed of, but you will be building equity to one day achieve your dream home.

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