Answer these Questions Before You Buy your First Real Estate
So you are planning to own your home. But before you make any serious commitment towards this end, we would like to present you this check list for you to ponder over your decision:
1. You must be ready to stay put at the new place for at least 3 years. From cost perspective, the high cost makes it impractical to own a new property if you can stay there for only under three years. And if you choose to sell away the new property within this short time frame, you very likely to end up poorer due to the high transaction fees charged on buying and selling a home. It does not matter if it is a rising or falling market, it is going to be a losing game for you. In fact when price falls, it is a double whammy as you not only have to foot the charges related to buying and selling, you will suffer from lower property price as well.
2. Brushing up your credit report. Unless you are filthy rich, you are not going to pay cash for your new home. The conventional source of fund would be lenders like bank. To make sure your application for a home mortgage goes as trouble free as possible, it is important your credit rating (publicly available) looks healthy. The trick is to obtain this rating report yourself before hand and when it signals problems, correct and fix them before you make appointment with the banks.
3. Find suitable home loan 80 percent of the purchased price is the average loan amount banks are willing to disburse, subject to qualification. But you can go to the online calculator to figure out more about the maximum loan amount the bank is willing to approve you. The calculator would require you to input information like your income, debts, and expenses to work out a loan comfortable to you, or to thee bank.
4. Size of down payment As mentioned above, banks expect you to put up at least 20 percent of purchase price. When you are not able to pay that amount, you may have to talk to some other lenders like the sub-prime folks.
5. Convenient public amenities and facilities for the family. The point cuts both way as buyers would want easy access to amenities and facilities while sellers knows they can charge a premium on their properties that are suitably located.
6. Can you find the new home yourself or do you need professional help? While Internet has touched on almost all aspects of human activities, home buyer/seller still prefer physical interactions. Do you have time to shop around the properties that are put on the market or do you engage the help of a professional real estate agent? Sometimes it is worthwhile to get professional help as the agent is familiar with the processes and when he represent your interest, you find yourself don't have to worry about a lot of hassles.
Finally, when you choose to go ahead with the house hunting, get ready for some serious work. Always do a background check on the property that interest you, before you get to meet the prospective seller or the representative. You would want to find out the sales trend of similar housing type in the nearby area. Check the most recent transacted prices. This way you will walk into the negotiation confident and talk your way into buying that dream home of yours. - 23159
1. You must be ready to stay put at the new place for at least 3 years. From cost perspective, the high cost makes it impractical to own a new property if you can stay there for only under three years. And if you choose to sell away the new property within this short time frame, you very likely to end up poorer due to the high transaction fees charged on buying and selling a home. It does not matter if it is a rising or falling market, it is going to be a losing game for you. In fact when price falls, it is a double whammy as you not only have to foot the charges related to buying and selling, you will suffer from lower property price as well.
2. Brushing up your credit report. Unless you are filthy rich, you are not going to pay cash for your new home. The conventional source of fund would be lenders like bank. To make sure your application for a home mortgage goes as trouble free as possible, it is important your credit rating (publicly available) looks healthy. The trick is to obtain this rating report yourself before hand and when it signals problems, correct and fix them before you make appointment with the banks.
3. Find suitable home loan 80 percent of the purchased price is the average loan amount banks are willing to disburse, subject to qualification. But you can go to the online calculator to figure out more about the maximum loan amount the bank is willing to approve you. The calculator would require you to input information like your income, debts, and expenses to work out a loan comfortable to you, or to thee bank.
4. Size of down payment As mentioned above, banks expect you to put up at least 20 percent of purchase price. When you are not able to pay that amount, you may have to talk to some other lenders like the sub-prime folks.
5. Convenient public amenities and facilities for the family. The point cuts both way as buyers would want easy access to amenities and facilities while sellers knows they can charge a premium on their properties that are suitably located.
6. Can you find the new home yourself or do you need professional help? While Internet has touched on almost all aspects of human activities, home buyer/seller still prefer physical interactions. Do you have time to shop around the properties that are put on the market or do you engage the help of a professional real estate agent? Sometimes it is worthwhile to get professional help as the agent is familiar with the processes and when he represent your interest, you find yourself don't have to worry about a lot of hassles.
Finally, when you choose to go ahead with the house hunting, get ready for some serious work. Always do a background check on the property that interest you, before you get to meet the prospective seller or the representative. You would want to find out the sales trend of similar housing type in the nearby area. Check the most recent transacted prices. This way you will walk into the negotiation confident and talk your way into buying that dream home of yours. - 23159
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posted by X - Men @ 5:47 AM
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