Home Buying 101
Buying a home is a process somewhat similar to buying a new car -- it’s a lofty investment that requires a large capital, tons of negotiating power and a willingness to be okay with possibly losing money in the short term. If you’re one of those people about to embark on their first home buying experience, consider the items below to help you make the smooth out the process.
Make the home a long term investment. The longer you remain in the home, the more equity and/or value it will generate. Selling it too soon ultimately ends up at a loss if you add up the multiple fees and costs that go into buying a home.
Check your credit beforehand. Look over your report. Is there something unusual that might cause a lender to think twice? Remove anything that could cause you to be turned down or better yet, consider obtaining a mortgage pre-approval.
Work within your means. Living in a Miami Beach condo is a dream shared by many and realized by few. Look for a property that you like but that you know you’ll be able to pay off along with all the other bills that often come with it, (i.e., utilities, telephone, cable) and your other monthly expenses.
A 20% down payment is not final. You may have to do additional legwork and have spotless credit but there are private lenders who will approve a mortgage at five percent or less of the home’s asking price which should make the whole thing much more affordable for you.
Check out the local schools. You may not care for a school if you don’t have kids but living near one of them means your home will build more value than one that doesn’t. Come the day you decide to sell your home, not only can you can set a higher selling price, your chances of finding willing buyers is substantially increased.
A real estate agent saves you time and money. The entire purchasing process can be confusing what with will all the legalities, fees and paperwork. Real estate agents are trained to assist buyers and can explain to you all the pertinent information in plain English.
Strongly consider paying the closing interest. Paying this interest equals a lower monthly home mortgage payment which makes sense if the home will become your permanent residence.
- Last edited December 01 2008
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