Introduction
Are you looking to buy a house in the US? Before buying your dream house there are a few important things to keep in mind and consider.
If you are first-time home buyers this article can help you purchase your dream home.
Buying a home is a big decision because you are investing a lot of money and time into this and we want to help you with our tips on a beginners’ guide to buying a home.
Here’s what you need to keep in mind before buying a house: Home ownership guide
10 Tips for a First-Time Homebuyer
1. Shortlists the property or house that fits your budget
How much are willing to spend to buy a house? Set your budget and shortlist all the house that stays on your budget this will save a lot of your time and energy, as you won’t be wasting your time on houses that are out of your budget. Usually, a mortgage lender uses the debt to income ratio to find out whether you can manage the monthly installments of the house you plan to take the homeowner’s loan out on.
According to real estate experts, you should buy a home that you can afford, don’t fall for what the mortgage tells you to buy. Before you make your final decision think about how you are gonna pay for the monthly payments after you buy the house.
The federal housing administration (FHA) sets their debt to ratio at 43%, this precisely implies that your overall monthly expenditure shouldn’t exceed 43%. This is the first step to be considered when buying a house.
Here is how you can view foreclosure homes and choose the best home that fits!
2. Location of the house
Do you want to live in a remote area? Or are you looking to buy a home where you can easily get to work? According to your preference, you should buy your house.
Living in a remote place is peaceful yet there are many challenges you will face, as it’s not easy for you always drive back and forth. Buying a house near your workplace might be a good choice if you have a stable job.
3. Make sure the documents are clear
When you buy a house there will be tons of contract papers you will need to sign. Before you sign any of those papers you need to make sure that all the property documents are legit. Examine each document properly lookout for a clear title of the home sellers.
Whether you are buying a house a plot in US, you should always keep in mind that the title of the deed is verified and should be clear of all dues. All the documents related to the house or plot should be original and have stamped on them.
4. Must do a home inspections
You can’t just buy a home by looking at the pictures of the house. Go for home inspections by yourself. It may be freshly painted and look just like your dream house but that’s just the outer beauty. Take all the time you need and look through the house.
Important Home features to consider while inspecting your new home:
- Check whether the heating and cooling systems are working
- Does the kitchen layout have enough space or does it fit your living style?
- Sellers incentive
- Bedrooms space
- Age of the house
- Size of the lot
- Home appliances
- Bathrooms
- Home maintenance
- Home warranty
5. Home improvement
Most house owner usually sells their house because they are relocating, or the house is old and need lots of improvements.
If you are buying a house that is old or needs lots of improvement or renovation then probably you will end up spending more money on house maintenance. There are also home insurance companies that offer different types of insurance. Make sure to get one for any emergencies.
6. Renting vs Buying
Buying a house is a big investment. So we have to take everything into consideration. It’s not always wise to buy a house just because you want to relocate or you got transferred from your job and you are moving to another city. [Need help paying rent?]
If you are not going to stay in that particular place for a long duration it’s better to rent a house instead of buying one. Renting is a good choice if you are financially not ready or you can hardly manage to buy a home or moves a lot.
However, you may consider buying a house if you are going to remain in that place for a long time. Taking a mortgage can help you pay for your house which might be the same amount as you pay the rent on a daily basis.
Learn How To Lower Your Mortgage Payment!
7. Know your financial situation
One of the most important factors to consider before you buy your dream house is knowing your financial situation.
You might be excited to buy a new house and at some point with the money you have or the mortgage, it might be enough to get the house.
But have you thought about the other expenses? The cost of living in the USA is quite expensive as we all know. After you buy your dream house, can you meet your monthly expenses as well? If yes! then that’s cool, if not, then I think you should reconsider buying a house right now.
8. Price comparisons
Don’t ever make the mistake of buying a house right after you go through a few houses. There are so many local housing market and local markets where you can do the house hunting. If lady’s luck is on your side you can buy a better house at a cheaper price. You should compare current home prices and make sure you are buying it at a good price range.
Compare the prices of each house and decide which type suits you or your budget. Use your negotiations skills and negotiate with the house owner.
9. Go for a house that you can afford
If you really want to own a house or are desperate to buy a house. Buy the house you can afford don’t go by what other people or the mortgage broker think you can buy. Don’t make the mistake of buying a home that will stress you out while paying for monthly installments.
While buying a house you do the math and make sure your mortgage payments are less than 30% of your monthly income.
10. Reconsider buying a house
If you are not sure whether you are gonna stay in that particular place for at least 10 years don’t buy a house there, instead of buying a house consider renting.
You may also consider a mortgage if you want to buy a house and pay it on an installment basis. There are many small mistakes to avoid and things you should know before you get preapproved. Once you get mortgage preapproval, you may take a specific loan amount depending on your bank account credit score.
Learn how to get a mortgage loan with low income here!
Pros and cons of buying a house in the US
Pros:
- Equity builder
- Good investment property
- Living Security
- Own Private space
- No worries about paying rents
- Tax benefits
- Better finance management
- Can use it as a loans refinance
- Your credit score will build-up
Cons
- The value of your home may fall
- You have to repair and maintain your house by yourself
- Expensive upfront cost
- Less mobility
- More responsibility
If you are a first-time homebuyer, keep in mind the above tips before buying a house in US. This will also help you to get proper mortgage rates. They will help you in saving money and also save you a lot of time.
