House buying need not necessarily be a daunting task if you take into consideration some key points. I have laid down 7 of the most basic but important points that you need to consider before buying a home. Consider each one carefully, here are the 7 tips!
1. Do not buy a house if you are not the committing type.
Maybe this might sound obvious to you but many people get caught in the trap of buying a home, and then realising that they would rather travel and see the world or that they prefer to move house and change the scenery from time to time. If you are not the committing type then rather consider renting and save yourself the hassle.
2. Calculate what you can afford.
How much disposable income do you have left at the end of every month? It is important to keep a budget, to know your financial situation so that you know how much money you can afford to pay back on a home loan. This will also help you get a clear idea about the price range of the houses you can look at. Home loan calculators can be found on many sites, they are tools which help you calculate your income and expenses, and make the calculating process that much easier.
3. Save up
Clear the credit, as bank will not give you a loan if you have a bad credit history and it is the first thing they look at. Once you have paid up all your debts it will be time to start saving. If you are serious about buying a property then it is time you seriously start saving, so that you have a lump sum to put towards a down payment on your future home.
4. Get bond savvy
Find out all you can about terminology such as fixed interest, closing cost and property taxes and how it applies to you.
5. Get pre- approved
You have done your personal budgeting, now let the professionals verify the amount you can afford to spend on a bond. When you are pre -approved on a loan you can make a serious offer if you come across a house that you like, knowing with confidence that you can afford to buy it.
6. Buy in a place close to schools and malls
Something important to remember when buying a home is to buy in an area that is close to schools and shopping centres or public transportation, because if you decide to sell your house one day these are the factors people consider when buying a home. It also boosts property values.
7. Get clear about what you are looking for
Yes I am sure we would all love a house with a sauna and indoor swimming pool, but make sure that even if you are approved for a bigger loan that you don’t go and buy a bigger property with features that you don’t really need. Keep it simple and get really clear about the basics.
Author Resource:
Danny Aaron manages the website http://www.isureins.co.za , a site devoted to providing you with the best information about house buying
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