Buying a house is one of the most exciting, yet daunting, things you can do as an adult. No matter how old you get, buying a house always fills you with glee.
Whether you are starting out as an adult or buying your retirement home, there are 5 smart things you need to do before buying your house.
- Know What You Want
What you want from your house will change depending on the phase of life you are in. Know what you want before you start looking so you can streamline the process. Your needs will change as you get older, when you first start out a two-bedroom place is ample enough, but as you age you will find you need more space for your growing family. The reverse usually applies when you’re older and considering retirement, this is when you can once again move into a smaller place that is easier to maintain.
- Know Your Credit Score
Not many people have the luxury of being able to buy a house in cash only. Knowing your credit score can help you determine the budget for your first, or next, house. Your credit score is one of the biggest factors involved in buying a house. Shop around for your lender to make sure you get the best possible mortgage deal for your unique financial needs.
Then, you will better know your options, such as if secured loans are the best route to take.
- Decide Your Location Beforehand
Before you start looking for a new house, first decide on what location you would like to move to. Looking for homes for sale in South Jordan UT can be significantly easier once you know which neighborhood you would like to live in. Decide what your priorities are, like having nearby shops or restaurants, and then work from there. Your location will largely determine the cost of your next home.
- Stick To Your Budget
Once you have a budget, you need to stick to it. It is important to understand that there will probably be unforeseen household expenses in your future and you don’t want to be left completely out of pocket if something happens. Decide on how much you can afford to spend and then spend 20% less than that, that way you can start a savings fund for a rainy day. Don’t look at properties that are outside of your price range, this will only cause heartache, or stress, in the long run.
- Decide On Your Deposit
Even if you think you will qualify for a 100% home loan, it would be wise to put down a deposit. Putting down a decent deposit means you will pay less on your monthly installment. Shop around for your bond, if you are in the position to put down a decent deposit and you know you will qualify for a loan for the rest, lenders will be throwing themselves at you. Get yourself the best deal before you buy a house so you can spend the rest of your time finding the next house that will be perfect for you.
More Tips for First Time Homebuyers
- First Time Homebuyers: What To Do Before You Move
- How to Be Prepared as a First-time Homebuyer
- 5 Ways Buyers Can Prepare to Buy During the COVID-19 Crisis
