What To Consider When Buying A Home
Becoming a homeowner is a serious decision which always has a lot of important factors to consider. Before you decide to buy a home, take the following into consideration.
The most important thing to consider before purchasing a house is your finances. Owning a home comes with it a load of new expenses such as insurance, utilities, taxes, and unexpected costs like maintenance. It is important to start a budget, so you can decide just how much you can afford to spend on a home. A Realty ONE Group Eastside agent can help you decide how much home you can afford.
The average price of new homes in the US is at $290,000 as of March 2014, and most lenders require a down payment of 5-20% the cost of the home. For a $290,000 house, the amount you would be expected to pay for a 20% down payment would be $58,000. If it is less than 20% you will need to take out PMI (Private Mortgage Insurance) which helps to protect the lender. There are a few exceptions in which some will not have to pay such a high amount for a down payment. For example, those with a credit score of at least 580 can qualify for a loan insured by the Federal Housing Administration, who will then pay a down payment of 3.5%. Those who have served, or currently serve the country, qualify for VA loans, which do not require a down payment at all. Realty ONE Group Eastside works closely with Movement Mortgage, and can assist in helping you in the home buying process.
Having a good credit score is important. Lenders always look at credit scores to make sure you are financially responsible. If you do get a loan, but have a low credit score, the interest rate and the down payment will most likely be higher. Make sure to check your credit report before hand and make sure it’s correct.
Buying a house is a huge investment, make sure you are planning to live there for the next 3-5 years. If you do plan to move and put it on the market before then, you will most likely lose money.
Lastly, are you ready for the responsibility? Houses require maintenance, like taking care of the lawn, garden, and making minor repairs to toilets and fixtures. If you don’t have these skills, are you financially able to hire someone to take care of these jobs for you? Keep an emergency fund for unseen major fixes like water damage or bad plumbing.
These are just a few ideas of important things to consider before buying a house. Take it slow, team up with a Realty ONE Group Eastside agent, and make sure you chose a house you will love to own.