You have been saving all your life for that one big purchase. Now you are officially looking for your dream home. However, before you jump into buying that new home, it is good to know some helpful home buying tips. You need to be aware of the fundamentals and latest trends in the purchasing process. Homebuyer education should be an essential part of this whole process. It helps you understand what to expect and to know how much debt you can take on.
Understand how much debt you can handle by being fully educated on homebuying.
Home Buying Tips
It is important to be aware of all necessary steps that need to be taken before buying a house. There are a lot of different things to think about, like: securing a mortgage, location, amenities, and the budget. Knowing what needs to be done in advance will make the home buying process less stressful in the long run.
So let’s look at some home buying tips useful to prospective home buyers
Set a budget.
Calculate all expenses to figure out an affordable monthly payment plan. Do not forget to include the down payment, property taxes, additional insurance that may be required, and closing costs in this budget.
Check credit.
A consumer’s credit score is one of the most important factors when qualifying for a loan to buy a house. Be sure to take steps to improve your score. Check for any errors so they can be fixed before applying for a loan. If there is a bad notation in your credit report, be prepared to explain it to the lender.
Consider taking a home buying course.
ACCC and other nonprofits offer housing services, including first-time homebuyer education courses that provide a wealth of information and advice on virtually every aspect of the home-buying process. These classes are also required with certain types of loans.
Compare mortgage options.
Do your research. Different mortgages offer pros and cons, such as lower interest rates or a smaller down payment. Look for the mortgages with the lowest interest rates and the best money saving options.
Research utility costs.
Do research and ask all the necessary questions about the home’s average energy and utility bills to prevent any surprises down the road.
Consider all expenses.
The cost of purchasing a home is usually the largest, but not nearly the only expense consumers will face. Make sure to budget for additional costs, such as moving expenses and maintenance. Pay attention during the home inspection so that you know if there are any major – and potentially costly – issues that need to be addressed. If you do not have one already, be sure to set up an emergency fund in case of any unexpected occurrences, such as a broken washing machine.
Consider the pros and cons of new versus older homes.
Although new homes may have a larger ticket price up front, many come with appliance and structure warranties that could save you money in the future should anything become faulty.
If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today.
