Are You Ready To Buy A House Today?

January 2, 2015

The art of home buying is not as easy as it seems, requires that you make several worthwhile decisions that will not send you money to the drain. Regardless of whether you are buying any home for sale in Fort McMurray for the first time or simply acquiring a second home or condo to rent out; this is a decision that requires you to seek the advice of expert lawyers, real estate agents, other homeowners as well as other individuals such as family members who have vast knowledge in the real estate market. With this at the back of your mind, how exactly do you know that you are indeed ready to make this investment?

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Financial stability

You should ask yourself whether your finances are ready for the commitment. For you to get a mortgage loan, you must have a good credit score that is if you have not saved up enough money to purchase. Additionally, you must have a steady job that guarantees regular income alongside a manageable debt to be a suitable candidate for a mortgage loan. Check your credit score from time to time and ensure that you do not engage in activities such as debt accumulation that lower your credit score.

The interest rates that will be offered by lenders is largely dependent upon these three factors and if they all work in your favor you are bound to get the best deals on interest rates that will not sabotage your finances. Lastly, if you have a substantive financial cushioning as well as a desirable ability to manage your finances, then you probably are ready to make the investment. However, if for you paying rent is still a challenge then its best that you reconsider the decision.

Down payment

Of course, you must have some kind of down payment for your dream home. Ideally, with larger down payment you stand a chance of enjoying more favorable ownership terms. Moreover, you get make lesser monthly payments with lower interest rates on your mortgage. Explore some of the best ways of getting a larger down payment, which may include getting money from your parents or simply saving up for a long period. In most instances, you will need a down payment of between ten percent and twenty percent of the total cost of the home. This guarantees you more equity in case you would like to move to another location ear than you have initially expected.

You are ready to settle down in one place

Chances are that you are buying the house to stay in it for at least five years before renting it out or selling it. Consider your job and your kind of lifestyle and see if these factors will allow you to live in your house for a long period. Find a good neighborhood where you can live in peace for a long period. However, if your job requires you to relocate from time to time or you simply cannot bear staying in one place for too long then buying is not such a good option for you.

You can bear additional charges

Buying isn’t similar to renting. With buying comes, more responsibilities such as taking up the maintenance cost, utilities fees as well as repair costs yourself as opposed to renting when in most circumstances you leave the expenses for the landlord. Do not buy a home if your financial situation will not allow you to cater for such expenses irrespective of the events of the real estate market. . Additionally, you will be required to pay homeowners insurance, homeowner’s association fees as well as higher transportation costs that are incurred, in the event that you buy in a location that if far from your job place.

You can afford some risks

The real estate market is an unpredictable one, as you already know. Despite the fact that you will find an ideal location to live in and satisfy your needs it is wise to understand that in the real estate market ,there are chances of your home value going really down due to external forces that you cannot control however much you may want. Only buy a house if you are ready to bear such unprecedented events and to be on the safe side, do not tie up all your other assets as collateral for your home mortgage.

You are ready for pre-approval

After getting pre-approved, you will be in a better position to find your budget for home buying. By applying for approval, sellers as well as realtors can determine just how serious you are about getting a new home. With a pre-approval letter, you can easily sort shopping for your new home since realtors and sellers are sure of your financial status. After pre-approval, you can get advice from a real estate agent for expert guidance just so you can locate a home that is perfect of both your needs and those of your family.

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