Important things to recognize before getting a house
Do you know what to consider when buying a house? Buying a home is a responsible process that should be approached carefully. Real estate transactions require preliminary market analysis and accurate financial calculations. The preliminary research includes the choice of area and type of housing. If you are ready to consider new developments, we recommend paying attention to Enclave at Pleasantville. This complex has already been completed and townhouses are waiting for their future owners. Are you buying a house for the first time in your life? Read our article what to know about buying a house.
The right time for the deal
The market develops cyclically. And the real estate market is no exception. Banks are currently offering record low interest rates on mortgages. At the same time, demand is gradually growing. As the number of houses on offer is decreasing, prices may soon skyrocket. Therefore, right now is the best moment to decide on buying a home. But for the transaction to be successful, the buyer must prepare in advance.
Find available options
At the beginning of the journey, you need to reasonably assess your financial capabilities. If you have high expectations, it can be bad for the result. Approximate calculations of the amount of the mortgage loan and the amount of monthly payments can be made on an online calculator. More accurate calculations will be made for you by an employee of a bank or credit institution. But if you order an in-depth check of your financial situation (credit history), the failure will lower your credit rating.
Various banks and loan programs allow you to take out a mortgage having for the first installment an amount equal to 3-20% of the purchase price. But in reality, you will rarely find offers with a down payment of less than 10%. Also add to this amount the costs for:
- Mortgage insurance;
- Fee for closing a deal;
- Commissions to a realtor, appraiser and lawyer;
- Reserve on a bank account;
- Property tax (does not exist in all states).
Sometimes it can be very profitable to buy a project under construction. For example, Vista Park Frisco is in the early stages of construction. Early buyers will be able to select the best plots at the lowest possible price. If in the future, homeowners decide to sell their property, they will benefit.
Payments you didn’t think about before
Many people, when buying a house for the first time, think they have to pay the amount the seller is asking for and that’s it. If you are using a mortgage, you also should not count on the fact that you will be limited to the payments calculated for you. Don’t forget about regular and one-time payments such as:
- Municipal fees;
- Stamp fees (these can be significant, so calculate them in advance using an online mortgage calculator, indicating your state);
- Mortgage insurance (lenders may not charge it if the borrower requests an amount less than 80% of the purchase price);
- Home insurance in case of repairs, theft or unforeseen circumstances.
Some banks offer supposedly favorable interest rates while charging large fees. The services of a realtor and real estate lawyer are also not cheap. This amount will have to be paid immediately upon closing the deal. In many states, real estate transactions are impossible without the participation of licensed appraisers. If the seller lists the house at too low a price, then such a transaction may not take place (it is recognized as fraudulent). The buyer also pays for the work of real estate appraisers. But sometimes these costs can be shared by both parties to the transaction.
When choosing an area and a house, take a look at such factors as:
- Level of infrastructure development;
- The presence of nearby kindergartens and schools (if this is important for you);
- Availability of a developed public transport network (if you do not have a car);
- Distance from home to your work;
- Trends of growth or decline in property prices in the area;
- The number of inhabitants (its growth or decline).
Price shouldn’t be the deciding factor. Better to pay more attention to the area, planning and renovation. Read the contract carefully. If you buy a home from a developer, he is obliged to eliminate all deficiencies free of charge. When concluding a deal with the previous owner, it is advisable to include a similar clause in the contract. Also, you must clearly define the date when you can move to a new home.