Whether you are an experienced buyer or first-timer, there are a few things that you should be careful about, before signing the dotted line. If your finances are in place, and you’re ready to buy a property, that’s great, but if you aren’t, this post will certainly help you a lot in finding a good property within your budget.
If you plan on renting property in near future, then you must be very careful about choosing a tenant, insurance coverage, and other details. Before buying, you need to plan how much your monthly budget is, and how much you can afford to pay as down-payment. You will have to look at the other expenses such as getting the interiors, and work-work done after purchasing bare flat or a house.
Create a Wish List
You need to get some idea about the type of options that you would like to see in your next home.After making the priority list, arrange them, based upon what is important to you. If you want pool as well as outdoor kitchen, but adding both crosses your budget, then decide what’s more important, and bring down the cost factor accordingly. You can make tradeoffs after creating your budget, and the wish-list.
Make a Realistic Plan
It is imperative to be practical about what you can afford to pay every month as EMI. If you wish to maintain your current lifestyle, take all the factors into account, right from cost of your piano lessons, your sandals, groceries, down to occasional vacations, and include all of them in the budget plan. Getting preapproved mortgage loans can be quite helpful; however, just because you are sanctioned for assured amount, do not think that you need to add up that in your spending list. Do not spend more than 25% of gross earning on a loan payment and limit it to 20-30% on housing costs, including property taxes, insurance, mortgage, and PMI.
Budgeting for Your Purchase
Use a loan calculator to get a better picture of the pricing options. Apart from the down payment charges, you need to consider other expenses as well. You need to account for cost of a home inspection, property registration, brokerage charges (if any), and all the other expenses, which may add up to a considerable amount.visit this link to get latest news.
You’ll have to consider even the closing cost, such as lender fees, loan, and appraisal, which would vary on the loan amount. The standard closing price on a $200k mortgage would be around $3,750. Do not forget to include moving cost, which would depend upon the area. Keep 1-2% of your income for maintenance and repair. You should also account for utility costs, such as water bills, electric or gas bills. Before purchasing, get an idea about the standard bills in that area by speaking to a couple of home owners who’ve been staying there for past few years.
Down Payment Plan
Once you know your monthly expenses and closing costs, you can easily think how much you can afford to pay as the down payment. But, always keep some contingency funds, and don’t shell out all your savings as the down-payment.learn more detailed information at http://1800sellfast.com/
Hopefully, this basic guide would help you find your dream house, without breaking the bank!
Author Bio:- Raymond Hills is a serial investor, who has years of experience in buying and renting property and he knows how to deal with realtors, and sellers.