Getting a house of your own is probably the biggest dream of every man. Your safe haven is supposed to be the place which is cherished for a lifetime and you would definitely want to get one with no regrets. Buying a house which you can proudly flaunt is an accomplishment of a lifetime, an opportunity to build strong roots for generations to come.
But with fierce real estate market strategies and tons of people waiting impatiently to buy their own house, a smart buyer should know how to win in the era of competition. Knowing the intricate details and loopholes of the finances involved in the process, the best home builders and strategising the plan accordingly is essential when one is looking for an affordable, mid-ranged house. Answering important questions such as, “what is a mortgage?” or “ what is a quote?” will not seem troublesome once you prepare yourself with the following steps, before getting your sweet abode:
First things first, let’s not dream big without enough provision. Saving money is the stepping stone towards getting your very own home. It is a given fact that you will need a good amount of money in order to get a house of your own. You cannot get a mortgage without a nominal down payment. This ‘nominal’ down payment can take a toll if you don’t have enough savings already.
Also, it is important to remember that the lower your down payment will be, the heavier it’ll cost on your mortgage insurance. Your bank statement should reflect enough money for the required down payment and closing cost to your lender and only then will you become eligible to buy the house of your likes.
2- Always set a budget
There always remains a high probability for you to end up liking a house that costs more than your decided budget. The lender might also figure a loan plan for you to get that house, but don’t neglect the consequences.
There can be a twist in your financial fate at any point and having to pay more than what you can afford is stress you rather not have. To avoid such financial stress, always stick to your budget and never get influenced by others because you and only you know what is the best choice.
As soon as you start preparing for a house of your own, you’ll have to check your credit. You will need to get a credit report and review your credit score before going forward with house-hunting. This is of utmost importance because your credit will decide if you’re eligible for availing a mortgage and the rate of mortgage which you’ll get. The rate of the mortgage is inversely proportional to your credit score, i.e., the higher your credit score is, the lower your mortgage rate will be.
4- Have a proper understanding of the loan programs
Your mortgage lender will be prepared with multiple loan programs even before you think of buying a house, but doing your own set of research before approaching any lender is always best suited because you’ll decide what is best for you and your mortgage lender will decide what is best for him.
The process of loan disbursement will automatically move fast once you know what rate you are comfortable with, what liabilities remain, and what benefits you can avail from your bank of choice. Researching loan programs help you in multiple ways because you will decide what you want from the mortgage before someone else decides the same for you. What is it that you really want? Is it the lowest down payment or the longest time period? All of the ticking questions can be answered with proper research.
It is not only the loan or the bank lending the mortgage which plays an important role in the selection of your safe haven. You obviously don’t want your children to ride their bicycles in a neighbourhood with high crime rates or an area around the industrial belt. Comparing the pros and cons of different neighbourhoods is very important before settling down for a lifetime. Researching about the area where you’ll be residing, the neighbours, the number of flats and residencies, the public transport availability, the locality in general, the nearby police station and the crime rate stated by the PS, the medical facilities available and many other such important factors must be checked before settling down in a house. Always think about the security of your family before committing to a long-term liability such as buying a house.
Buying a house doesn’t essentially take long if you’re well prepared, so don’t rush the preparation. Since it is a huge decision, you don’t want to miss out on important steps like comparison shopping or home inspection. Like any other important decision, a successful home-buying experience will give a lifetime of satisfaction.
(This article is written by Shubham Singh)