Over 64% of households in the US own their own home.
Yet this number drops to one-third of the population when you look at people under the age of 34. It’s becoming harder to get on the property ladder, so how can you ensure you get it right the first time?
One way is to plan carefully with our expert help. Read on as we present our essential home buyers checklist.
1. Be Financially Prepared
The most important piece of advice with regard to purchasing a house is to ensure you are financially prepared. There are many costs other than your deposit and mortgage payments to consider.
Start by knowing all the fees and associated costs with buying. After this, check you can afford the upkeep of the home including utilities, maintenance, insurance, and taxes. Because you can qualify for a large mortgage does not mean that you should.
If you don’t follow this essential step in the guide to buying a home one of two things will happen. The first is that you will lower your standard of living if you are struggling to pay for your upkeep. In the worst-case scenario, you may default and have your home taken off you.
2. Get the Right Mortgage
It is getting increasingly difficult to qualify for a mortgage. Yet that does not mean you should accept the first offer that comes along.
Make sure you shop around to get the best deal. You may even consider different types of offers like FHA or conventional loans. Always look at the terms of the loan as well as the rate being offered, as they may not be favorable.
3. Address Your Credit
The better your credit score, the more likely it is you will qualify for a loan. You will also get offered much better rates.
Get a copy of your credit score then check for any discrepancies. Try to improve it by paying down debts and clearing any credit card bills. Make sure your debt to income ratio is as low as it can possibly be.
4. Get Pre Approval
Pre-approval is when a lender gives you clearance for a loan before you have found the property. These will generally last for around 90 days during which time you can find a property. It can give you an advantage as it provides security to a seller, letting them know you are able to provide the funds to buy the property.
5. Be Flexible
You may have an image of the ideal home in your head. Yet this may not even exist, let alone be on the market. Create a checklist for buying a house that includes your must-have features and follow with ones you would like.
Compare it against your budget to see what your money can get you. Then shop around and get help finding a property. The Simien Team has a great website to assist.
Conducting the Home Buyers Checklist
This home buyers checklist is easy to start if you plan in advance. Begin with your finances and work to improve your credit rating. You can then get pre-approval and start to look for the right home.
This article is one of many to help you get on the property ladder. From saving to investments, we can help you manage your money in the coming year.