Buying a home is an enormous investment, one that could end up being the largest in the lifetime of everyman. For some people, it gives them a sense of pride and freedom that cannot be compared to the one obtained when living in a rented property. There are numerous advantages to be gotten when you own your home such as not being bound by landlord’s rules or building equity with monthly bills or even the additional tax benefits. Although buying a home may be one of the first steps to take toward building long term home, it is imperative to put some things in consideration before venturing into this ordeal. Here are some points to consider before buying a house;
•THE PRICE OF THE HOUSE: This is a major factor that must be considered when you are buying a house. The price of the house refers to how much it will cost you or how much you will pay the seller for the ownership of the house. This is to ascertain if you can truly afford the house or get a loan. One of the guidelines to follow is the debt-to-income ratio which should not be greater than 36%. Also your mortgage debt alone should not exceed 20% of your monthly income. It is essential to remember that your personal situation will ultimately determine what you can truly afford.
•PROCESSING FEE: The processing fee refers to the cost of doing cost for doing business which are but not limited mortgage application fee, home inspection and closing costs. The mortgage application fee is the fee to be paid to the lenders for application which usually varies and ranges between hundreds of dollars. The closing costs refers to the cost incurred when processing the deeds/ titles/land transfer/ legal fees. It is advisable to consult an expert realtor to have an idea of how much this will cost.
•MEMBERSHIPS AND UTILITY BILLS: when shopping for a house, the monthly utilities should be part of the basis of your decision. Knowing the average utility bills per month of the previous owner of the house or neighbors with similar buildings will be helpful. In addition to the utility bills, the homeowners association due for administration and other upkeep should also be considered. You should be aware of how much this will cost you annually, how often this bills and dues increase and what other charges are to be expected to be incurred as this will be helpful in budgeting.
•INSURANCE AND TAXES: It is important you insure your house against disaster and major damage. The cost of purchasing home insurance can also increase the amount you will be spending. You can add your homeowners insurance to an existing plan like an auto or life insurance. On the other hand, property taxes have to be well calculated and paid in full to the proper agencies to avoid owing a lump payment after the property taxes are assessed each year. You should also make it a point of duty to know if the previous owners have settled all their tax defaults.
Although there is an endless list of points to consider before buying a house, the ones listed above are basic and general. Other points are the present housing market, interest rates, timing and your future plans as well as flexibility and mobility of your career or family, Having considered those factors, you should also remember that there is no rule that mandates you to buy a house at a particular age. When you are sure of a neighborhood, it is advisable to consult a realtor or renting as test-drive.