Buying a house is one of the biggest American dreams, but it has its challenges and it’s not something to be taken lightly since it’s an important monetary decision to own your home.
To buy a house you need to estimate how much you can borrow, choose a property, create an advanced plan to qualify for a low mortgage rate and make a decision that seem complicated at times, but it doesn’t need to be difficult.
We know that buying a home is one of the biggest purchases you can make, and it can be easier if you follow these steps:
Improve your Credit Score
A good credit score means that not only will you able to get qualified for a mortgage loan to buy a house, it also means you’ll get qualified for a better interest rate and you will have a lower mortgage payment.
But if your score isn’t that good, you can improve it by checking if there are errors that could be dragging down your score, pay down your debts and make your payments on time.
Get a secured credit card or loan to establish a credit history or opening a new credit card account may help you too.
Have a stable job
If you have been employed for the same employer for at least 2 years is a good sign you’re ready to buy a house.
The longer you are with an employer or the number of years you have been a business owner, the more likely you are to be stable and show that you are able to make payments.
Create a good fund to buy a house
When you are planning to buy a house, you must consider there are a lot of ongoing costs you’ll have to manage like home insurance, property tax, potential renovation and other costs.
Make a good down payment
Sure, you can buy a home with only 3.5% or 5% but if you have a large down payment will help you to qualify for a better interest rate and possibly eliminate paying mortgage insurance with a down payment of 20% minimum.
You don’t plan on moving soon
People don’t typically buy a house planning to move within 2 to 3 years unless it’s an investment property.
If you see yourself living at the same house for at least five years, then buying might be the right decision for you.
By staying longer, you will be able to make or regain what you paid in transaction costs and you can actually make a profit if you decide to sell a house.
Do a good research
If you are planning buy a house, you can talk with Adepta Realty to start planning, search for the best properties and neighborhoods, how much you can afford, down payment, closing costs, inspection costs, legal fees and mortgage rates.