Looking to Buy a House in 2020? Keep These Tips in Mind!
Renting a home can be convenient but it also comes with a few drawbacks. Take the rent, for instance—it can increase at any time. Not only that, but restrictions are commonly imposed on the property.
That’s why some people choose for homeownership. For one thing, your costs will be more predictable as they’ll be based on a fixed-rate mortgage.
Thinking of buying a property? Need some tips? If so, you’re on the right page! We’ll be going over a few things to consider when buying a house.
Keep reading to learn more!
Benefits of Owning Your Own Home
Owning a home means that you’ll get to enjoy greater privacy. That is, you won’t have to worry about other people entering your home.
Assuming that you have a mortgage, you’ll also be able to deduct interest expenses from your income taxes. In doing so, you’ll likely save yourself a few thousand dollars a year!
4 Things to Consider When Buying a House
Buying a house might seem overwhelming but it doesn’t have to be difficult. Here are a few tips!
1. Determine Your Budget
It’s important to determine your budget before buying a house. The last thing that you want is to sign up for something that you can’t afford!
Ideally, your monthly payment shouldn’t be more than 25% of your monthly take-home pay. Remember to leave room for other expenses as well such as taxes, insurance, and HOA fees.
2. Get a Pre-approved Mortgage Loan
Get pre-approved for a loan before you start your home search. To do so, your lender will have to verify your financial information (e.g. taxes, proof of income, etc).
Once that’s finished, ask for a pre-approval letter—that will let sellers know that you’re a serious buyer. If anything, it’s one of the best ways to get ahead in a competitive property market.
3. Make a Competitive Offer
Make a competitive offer once you’ve found your ideal home. Not sure how much to offer? You can always rely on your real estate agent.
The most important thing is to think it through. Don’t make an impulsive offer, one that’s higher than you can afford, just to knock out your competition.
4. Prepare For Closing
The closing process will begin as soon as the seller accepts your offer. During this period, you’ll want to get the home professionally inspected. If anything is wrong, you can request that they fix it.
A final walkthrough will then be conducted—generally 24 hours before closing. At this point, all of the seller’s belongings will be cleared out.
Preparing to Buy a House
And there we have it—four things to consider when buying a house. If anything, you don’t want to rush the process; take your time.
Looking for more real estate tips? If so, be sure to check out some of our other blog posts!
