Newly wedded couples are always eager to buy a home and start their new lives together. While it appears like a smooth ride, it comes with numerous challenges and preparation. If you have already exchanged your vows, and you are house-hunting for an excellent place to start your lives together, read through these tips to get fully informed:
Primarily, you have to ensure that you operate on a budget and you have a sizeable down payment to place on your new home. Use the following tips when drafting your financial plan.
Have a good credit score
Generally, the credit scores you need to get an approved loan for buying a house is relatively low. However, if you want to get a better place, you will have to get a higher score than average. Therefore, you must start working on that score early sufficient, because it could take you months. In a nutshell, what you have to do is make your payments on time and lower debt utilization ratio.
Pay off your debts
Paying off your outstanding debts boosts your credit score. It also makes you a desirable client in front of lenders. When applying for a mortgage, the lender looks at your debt against your monthly payments, and if the percentage is too high, you cannot qualify.
Save up and budget effectively
Ensure that you have some money saved up for your new home so that you cover most of the expenses without going deeper into debt. Also, ensure that you budget well and you have a considerable down payment for your new home.
Home Buying Tips
In this modern age, many real estate trends may tempt you to make an impulsive purchase which may have deadly repercussions to your finances. Therefore, we have outlined tips for buying a house that will help you make your new home a blessing and not a burden.
Find a home within your price range
When purchasing your new home, it should not strain you too much financially. Therefore, ensure that you use the services of the appropriate real estate agent that will help you find good houses within your budget for you to choose.
Research for the best neighborhoods
After you have found good houses within your price range, avoid making your decision based on the home property alone. Ensure that you factor in the neighborhood aspect in making your decision about which house to pick.
Attend open houses
After figuring out the houses with good neighborhoods, be sure to attend their open houses. It will allow you to get the best home from the list compiled by your real estate agent.
Make a competitive offer
When you get a house that is within your budget, you should make a competitive offer. Your real estate agent will guide you adequately without making an impulsive offer to knock your competition out. If the house is in a highly competitive bid, a personalized letter may help your offer stand out.
Prepare for an official closing
Once the seller accepts your offer, the closing process will begin immediately. Keep the process smooth by ensuring you know what to expect. Ensure you have the right documents, and confirm with your real estate agent for any further clarifications.
Home Buying Mistakes to Avoid
If you are a first time home buyer, there are many mistakes you could make. Here are some tips to guide you through:
Not operating on a budget
Without knowing how much you can afford, you might just be wasting time. You might end up looking at houses you cannot afford, or going for events of homes that are above your budget. To avoid making this mistake, use a mortgage affordability calculator, to help you know what is affordable for you.
Not being on first time home buyer programs
Many programs offer low down payment loans. Ask a mortgage lender about your first-time buyer options, and also programs in your state. Avoid concluding that you cannot buy a house because you do not have sufficient money.
When buying a previously used home, it will need some small repairs. Ensure that you budget sufficiently to set aside some money for repairs and other things your new home might need. Don't empty all your savings on the purchase of the house alone.
Weatherization and repairs
When buying a home it is important to ask questions about the weatherization of a home, aka is the home properly insulated. If the home is not properly insulated it can cause your Pennsylvania Power Switch utility bills to soar
Be sure to follow this guide before buying your new home together with your partner, and you will have no regrets with your new home.