Don’t Rush a Home Purchase: Here’s How to Prepare for itInk Well Mag August 6, 2015 0 COMMENTS
With a strong desire to have their own property, some people make uncalculated moves when they purchase a home. Their inexperience, excitement and desire to complete the process right away can get them in trouble and make the purchase a lot more expensive than it actually is.
If you’re buying a home, keep in mind that it is a journey that forces you to consider many factors to ensure that you’re making the right decision. Resist the urge to compete with a friend or a colleague who just recently bought a home. You have to learn and get comfortable with the local market to choose the right property for you.
The best thing you can do is to prepare for a future home purchase. Laing+Simmons Artarmon says this will make the process go smoothly and prevent headaches associated with a major property purchase. Here’s how you can prepare when buying a home:
Large Down Payment
While a bigger down payment won’t guarantee a mortgage approval, it surely helps. Putting a large sum of money in a home also indicates that you’ll be less likely to stop making monthly payments in case you encounter a financial problem. If you don’t have enough money for a down payment, start saving more or get a second source of income.
Home Ownership Expenses
If it’s your first time owning a home, it is easy to get overwhelmed with all the associated costs. To avoid surprises, research and understand the expenses related to home ownership. Some people lose their homes because they don’t fully understand their mortgage. They were attracted to a lower initial payment that enabled them to buy a more expensive home, which proved to be a bad decision later on.
No More Big Purchases
As you prepare to apply for a mortgage, avoid major purchases over the next couple of months. This would reflect on your credit record and would mean that you’ll have less money for a down payment. Do not make the mistake of applying for a home loan if you carry excessive debt, as this will increase the likelihood of rejection.
Apart from these tips, it is also important to take your time when looking for a property. Keep in mind that your home is your private space and the place where you’ll make memories. Be sure to make the right choice.