Before buying a home you need to be confident enough to know that it is not a easy job. Many factors influence you when to think of buying a new apartment/home. Here are the few tips which will make you a fearless home buyer.
Tips to make you a fearless home buyer
- Start saving
If you have decide that you are going to buy a house you need to start saving for it as early as possible. Whenever we need to buy home we have to give a down payment to the builder, this down payment is to ensure that you will be buying the house to the builder. Mostly you have to put 20% down (this is the common percentage), but it may vary more or less depending upon the builder, area etc. If you have already saved up for the down payment you don’t get burdened at the initial stage only.
Here, are some tips to save money for down payment
- Invest in saving plans
- Save up your work bonuses
- Save your tax refunds and
- Using apps you will be even be able to track your progress
- Check your credit and make sure you don’t do any credit activity
Whenever you are applying for mortgage loan, your credit will be considered as the key factor whether you are approved or not. If you are applying for mortgage you make sure you don’t open a new credit account as this will low your credit score. Make sure you ward off all the things which will decrease your credit score.
- Make sure you select a home which is affordable to you
Before you start searching for your dream house, it is very important that you keep your budget in mind. You need to make sure that the home, you are going to buy don’t end up you in trouble due to over budget.
- Consider other down payment options
If the savings which you have been doing is not enough you may try asking your family members to help you for the same. You can even search for bank which will give you maximum loan on less interest.
- Plan for the closing cost
If you are thinking that saving up only for the down payment will be fine then you are wrong, with down payment you need to even save for the closing amount which is approximately between 2% to 5% of your home loan amount.
- Keep some money aside for after move-in
Tough the main goal of any home buyer is to buy a home but you even need to save up some money as to what will go inside the house. This includes your furniture, rugs, paint, any additional update you need to do in the house etc. it will be wise if you reuse your old furniture if possible this will reduce your cost.
- Decide as to what type of property you want to buy
Depending on the members you have buy a property according to it. E.g.: if you are single member then a 1 BHK will be sufficient for you provided you don’t need more space and other budgeting factors as well. Considering your need and keeping your budget in mind you will be able to plan for the type of home you want.
- Make sure you hire a right buyer agent
Make sure that the dealer you are hiring is highly skilled, motivated and has full knowledge about your area.
Lastly, you need to know that buyer can be fearless only if he believes in his/herself.