Buy a House Only When You Are Ready
There is more to buying a house then just shouldering the monthly mortgage payment. Maintaining a house can be pricey affair, not to mention hectic considering the tons of responsibilities that it comes with. Unless you are in the right frame of mind, with an income substantial enough to foot the bills, don't make any hasty decisions.
Get Rid Of Unwanted Fears
Every time we are on the precipice of making a huge decision in our life, we are plagued by irrational fears. It is normal; everyone goes through that and people who say they don't are outright lying. Get a firm grip on your fear and learn to face it. Even if your decision goes awry, the worst that will happen is you will face a loss, but you can always learn from your mistakes.
Do Your Homework
It is foolhardy to foray into something new without first knowing everything about it. Collect basic information such as what kind of property you are looking for, the area that will be suitable to you and the amount you are willing to spend, based on these basic facts start your search. From the current rates prevalent in the real estate market and availability of property to documentation work involved, there are a lot of things that you need to know about.
Know Your Credit Standing
Before you go ahead and apply for a home loan, know exactly what your credit standing is. To get started, get your credit report, check every single detail given and try correcting any inaccuracies. Do all those things that will improve your credit score? Remember, higher the credit score the faster will your loan get approved, and that too at a low interest rate.
Get Pre-Qualified For Loan
This should probably top your priority list. Before you start making offers on the property, make sure to acquire pre-qualified letter from your lender. It will give weight to your offer and put you in a good stead with the seller. Getting the letter is not hard; many lenders will be more than willing to oblige you if you have a good credit history.
Make a 20% Down Payment
Small down payments can put you in a bigger financial ditch. With the ever so turbulent economic conditions, you never know when recession strikes again. When you make a 20 to 30% down payment, your loan plan will be easy to manage.
Understanding all the complicacies associated with real estate dealing is not easy, especially if you are a novice. It is better to hire a credible realtor who can help you work through the intricacies involved.
By Marion Rene