Buying a house is perhaps the biggest financial decision of your life. You must remain careful and take a wise and informed decision as it is a matter of crucial importance for you.
Why are you buying the property?
There can be many reasons why you have decided to buy a property.
- You are fed up of living in a rented property
- You want to pay the EMI of your own home rather than feeding your landlord
- Your family has outgrown the space available in your present home
- You are interested in buying a rental property
- You want a property having a yard
- You desire to live closer to your workplace
Once you know the real reason behind your desire to buy a property, it becomes much easier to identify and buy the right property matching your requirements.
Can you afford buying a property?
Knowing the answer to this question is very important in arriving at a decision to buy a property. Of course it is a great way of building an asset for your family and an investment into your future. But only you know whether you can easily afford the monthly repayments to the lender for a long time to come. If you are settled in your career and sure of receiving increments in future, you can go ahead and buy a home for your family.
Preparations before buying
You may be surprised to know this but it is a fact that there are some preparations that are necessary to be carried out before you start the process of buying.
Make the green file
If you do not know, green file is a file that contains financial documents of an individual necessary for securing a loan. It includes:
- Your banking details
- Financial statements
- Investments and assets
- Credit card details
- Loan details
- Recent paystubs
- Tax retunes
- Life insurance policies
- Retirement account information
Check your credit report
This is perhaps the most important step in your preparation for buying a property. Every lender studies your credit report and pays attention to your credit score before deciding in favor, or against giving you mortgage loan. Ask your credit report from one of the three credit ratings (Equifax, Experian, and Trans Union) and check your score before you go and apply for a mortgage loan in a bank. It is your credit score that decides how much of a loan the lender will give and at what rate of interest.
Be realistic with your expectations
Many individuals are very happy and excited when starting their search for a new home. All their enthusiasm fizzles out when they find that they are not getting their dream home in the price range that they have in their mind. If you have seen 3-4 houses and feel that you are not getting what you have in your mind, you have to remain prepared to make some compromises. This is exactly how people are able to buy homes for their families. A little compromise on space, location, price, and features is what you should be mentally prepared for. If you are too picky, you will spend a lot of time seeing houses and still not be satisfied with any of them.
Learn more about C21 Lady of the Lakes Realtors and the numerous services they offer including: buying a new home, selling a home, or renting a home at www.ladyofthelakes.com. To contact one of our real estate agents call 734-426-6060 today.