Getting the keys to your new home is an unforgettable experience! Buying a new home can be both an exciting and daunting experience, especially for new buyers. If you are considering buying a new home this year , check out the list below with some tips to be prepared!
Bank balance
Many property experts recommend that home buyers should have at least 20% of their new home’s purchase price secured as a down payment for the lowest possible mortgage risk. The higher down payment you are able to save, the more affordable your monthly payments will be, and the lower risk you will be seen to your Mortgage Lender. According to experts, one of the most common things that new home buyers underestimate is the additional expenses that come along with new home.
Balance your budget
It is important to focus some attention on your current spending habits. With the help of a Lender, you should determine the mortgage and interest rates for buying a new home. After getting pre-approved, practice putting away what your estimated monthly mortgage will be. It is always better to choose property according to your budget. An over-the-budget home will ultimately put a lot of stress on your pocket and your personal life.
Paperwork
Buying a new home is not all about calculating numbers, it also requires a lot of paperwork! Not only the purchase itself, but the pre-approval process can require a lot of signatures and documentation. Being prepared beforehand can help! Expect your Lender to want to see proof of income, bank statements, credit history, and more. Likewise, using a real estate professional during the purchasing transaction provides an extra layer of safety and accountability when it comes to paperwork. They are required by law to maintain all files pertaining to the sale or purchase of your home.
Mind the location
Your new home is going to be the place for many memorable moments ahead. This place will occupy a large part of your life, so it is important to be sure you’re comfortable growing into the home for years ahead.
Location is yet another important aspect to look out before buying your new home. Decide what your wants and needs are (i.e. close to work, good for new family’s, walkable, etc). Check whether your location is in a flood zone or not, check public records of crime rates, school rankings, and desirability. If you have concerns about the location (i.e. busy street) your future home buyers will also!
Emergency fund
No one knows when a financial crisis is going to strike, it’s best to be prepared before it arrives! Many experts agree that saving 3 months of living expenses is a good starting point to financial security in spite of crisis.
Conclusion
As with most things in life, failing to prepare can mean preparing to fail. Consult professionals, do your research, and most important, make sure the timing works for your needs! Homes will always be available for purchase, there’s no need to rush before you’re ready!
One of the best first steps in preparing to purchase is contacting a real estate Broker in your area. They’ll have great recommendations on mortgage lenders, home inspectors, etc. to assist you on your home buying journey!
Contact SCUDO to get started today!