Homeownership is one of the biggest dreams most of us aspire to make a reality. It is also the biggest purchase one will make in their lifetime. Owning real estate is not only a dream come true but also increases your wealth for you and generations to come. This article may help you in the decision-making process.
Here are five things to keep in mind when trying to purchase your first home:
What kind of home suits your needs?
You have several options that are available to you in the housing market. Do you plan to buy a single-family home, a townhouse, a condo a multifamily building with 2 or 3 units? All of this depends on the size of your family, your purchasing power, your choice for kid's schools, lot size. Are you looking to invest to build equity and sell and move in a couple of years?
You should also make a list of specific needs in your house. Do you need a big kitchen, what kind of neighborhood, what is the size of the home? How many baths, how many beds? You can break it down to the last detail that you wish. I had a friend who wanted to know what kind of plumbing pipes the home had.
How much mortgage do you qualify for?
This depends entirely on the lender, who bases this on your income, the number of years in the job, your debt, your credit rating. You may think you can afford a home for $800k the lender might give you approval for $700k or maybe $950k. it also critical to decide if you want to borrow how much the bank gives you, you don't want to end up paying all your income to mortgage and have very little for monthly expenses. Most home sellers and real estate agents will not talk to you without a pre-approval. Find a good real estate agent to direct you to good lenders.
Should you go for a 30 yr. or 15 yr. mortgage?
Most buyers opt for 30-year mortgage, shorter mortgages (15yr) might be cost-prohibitive in the short term, but help you save on interest in the long term. Again, look at what your financial goals are, and how much you can pay monthly. Ideally, it is suggested to look at longer mortgages. The math changes depending on the interest rates. Low-interest rates make longer mortgages appealing.
How do you determine which monthly payment suits you?
Remember one will always have growing home expenses, homeownership comes with added costs of taxes, upkeep, and other expense. Make sure you factor these costs in when choosing how much you can afford to pay monthly. Most people decide to cut back on some things to be able to make higher payments. Take care of your financial health in the home buying process. Your future savings matter too.
Who will help you with the buying process?
The big question ?? a real estate professional can help you identify houses and help with the buying process. The real estate professional will help you negotiate, offer, and help you purchase your home. A good real estate agent can help you avoid a lot of stress and unwanted mistakes in your home buying journey. Your real estate agent should be your local expert! He or she should also be approachable and willing to listen to your needs.
I do hope this has been informative, please do write to me at jr.homesold@gmail.com for any further questions. I'm a real estate specialist based in San Jose, California.
| About Author |
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I Live in San Jose. After a Long stint in Tech & Education moved to Real Estate in, Bay Area California.
I hope my expertise will come of help to you and you loved ones.
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Website: https://jayshreereddy.exprealty.com/
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