Owning a brand new house is a big decision. The homeownership process must check several parameters as it is your dream house. Considering the complications that entail the home buying process, things might become difficult.
As a first-time home-buyer, you should consider the following questions before deciding on your dream house.
How much can I afford?
The first question that every first-time home buyer should ask is what budget have I set? A pre-defined budget makes it easier to cross out the properties beyond your affordability. It also eliminates the chances of you getting swayed by the lender and having control over your money. Also, consider home loans as an affordability parameter.
Is the property in a commutable location?
It is essential to check on the location of the house. Any good property should have a commutable address. It’ll be easier to avail transportation facilities and convey to and from.
How should I prepare for a loan?
Availing on a house loan is quite common these days. Although, there are a few things that banks consider before giving out loans, like your employment history, debt-to-income ratio, total debt, credit score, etc. It is always better to have a positive credit score. It helps to climb higher on the bank’s loan advancing list.
How much down-payment to make?
The amount of down payment depends on your decision. However, 20% of the total sale value is generally the standard down payment. You can also opt to pay a higher amount. It’ll have two benefits-you can get ownership of the house sooner and will have lesser instalments to pay.
How long has the house been on sale?
This question has got to be the most important one. A house is on sale for a long time either because the price is high or because there is some issue with the property. It is better to start fresh with a brand new house. It gives you more choice. You have the freedom to furnish the place.
And this is it! You have a checklist of questions to answer before stumbling onto your first house.
