What should you do before buying a house?
1. Check your credit score and raise it if it’s below 700.
2. Get pre-approval from your lender to have a higher chance to get the home of your choice.
3. Find the most suitable loan for your financial capabilities.
4. Consider all the post-purchase expenses, such as insurance, repairs, association fees, property taxes, etc.
5. Decide whether you want to live in a condo or home.
6. Choose a property suitable for your lifestyle.
7. Find a good realtor to help you
Once you have located your dream home, you’ll find that it’s tempting to buy it immediately, especially when you know that you have the finances for it. Just imagine that Townhouse for sale in New Manila that you’ve been dreaming about for years is just a down payment away. However, it’s important to remember that there are a few things you need to consider first. Here are some of them:
Check and Raise your Credit
Your credit score will dictate your loan terms. If it is lower than 700, then you could try to repair it. By getting it above this score, you can get a low interest rate, which will save you so much money in the long run.
The most important thing to do in the home-buying process is to get pre-approved. Doing this means that you have to reassure the lender that your financial situation credit score will not change. In the process of pre-approval, lenders will look at your employment, income, and credit.
By being pre-approved, you get to have a higher chance of getting your dream home compared to other buyers, who may also eyeing the property. At the end of the day, the seller would choose the most suitable candidate, and you can help them out by securing a pre-approval letter that ensures you could get a loan to purchase the New Manila townhouse for sale.
Look for the Best Loan
Lenders should not be the only one choosing buyers; you should also be able to select your lender/s.
When choosing a mortgage, you must remember to take into account the possibility that you could be paying it for a long time. This means you must choose the one the fits your financial capabilities the best. Apart from looking at the lowest mortgage rate, you also need to consider the annual percentage rate (APR). Some loans also have high closing costs.
Basically, you need to look at the whole package when looking for a loan and not just the rate.
Compute all Post-Purchase Expenses
Your post-purchase expenses include insurance, repairs, association fees, property taxes, etc. Needless to say, your financial capabilities should not just cover the purchase and mortgage costs, but also the aforementioned expenses.
Be sure to do the research about all the expenses you need to pay that comes with getting the property and see if you can afford it. If not, then consider more realistic options.
Condo or Home?
The question above is one of the first things that home buyers need to answer for themselves. Do you want a beautiful townhouse for sale in New Manila, or a lavish condo for sale?
You should know the pros and cons of both types of homes so you can make a sound decision. You wouldn’t want to be disappointed in making a decision that you will regret later on.
Consider Your Lifestyle
Since mortgages could take many years for you to pay, you have to be satisfied with your house for sale purchase. Consider your lifestyle and what you will need in and out of your home. To help you out, here are a few things to think about:
- Space means room, but may also need more maintenance.
- Lawns are beautiful, but require constant upkeep.
- Location is everything; being close to places you like is very important to satisfaction and long-term travel costs.
- The neighborhood has to suit you.
Find a Good Realtor
In line with the previous item, you need to find a good realtor that not only knows the property well, but the surrounding area as well.
This person should be able to point out a hard-to-find restaurant nearby that serves your favorite dishes. Also, he should know of other homes around the area. Thus, he will know if a certain property is priced too high compared to other available houses for sale that are nearby. Who knows? Maybe there’s an even better property that’s near than the one you were originally eyeing! Or maybe even one that’s just as good, but a lot cheaper!
To be able to tell if a realtor is good, he has to be working full time in the business with a good streak of successful sales.
Evaluate the Property Worth
You must take into account that there will be fees, such as inspections and appraisals that could cost a lot if you are not aware of the worth of a home. So, in order to avoid over-paying for a property, you need to have the said good realtor inform you or the market values of the area you want to purchase a home in. Considering that banks and sellers aren’t flexible with adjusting prices, you should do this before making any deals.
As you can see, purchasing a home is not just a matter of paying on time. After all, it’s an investment that you will literally live in for the next 30 or so years. In short, it has to be worth it.
Follow these tips above, and you will definitely get your dream New Manila townhouse that is perfect for you.