Buying or constructing one’s own house is not an easy process, owners usually have many queries and concerns before starting a big project:
1. Am I prepared for homeownership?
Unfortunately, there aren’t any clear signs that you are ready for homeownership however, there are signs you can pay attention to in your everyday life. A home is an abiding investment, therefore being in a residence you adore and plan to stay for a while is necessary. Being financially stable enough to take the additional load of homeownership is also significant; it is important you make sure that you do not have any debt, a healthy down payment and stable job to be able to take on the expenses.
2. Should I buy instead of renting?
Real estate markets are variable and if you can afford it, buying a home is a much better and successful investment than renting a house or an apartment. Purchasing your own house can be cheaper than renting in the long-term since rent is money you will never get back. Owning a home is a wise way to build long lasting wealth as in todays’ rising economy, the value of a house increases with time.
3. How much money would I need for down payment?
Down payments amounts differ depending on the purchase price of the home along with varying interest rates. Down payment requirements can also vary by the lender and borrower’s credit history. Therefore, take the time to research and narrow down payment options that will work best according to your monthly earning and general savings.
4.Should I wait till the prices decrease?
Initially, prices of real estate are a homebuyer’s biggest concern and they usually wait for the market prices to decrease only to find out that they increase over time instead. In todays’ economy where land is valued, the prices of houses will continue to rise up therefore, waiting is not necessarily a bright solution. In general, when you have the safety of a stable job and require the need of a house for your family, you should give preference to buying a house rather than spending money on renting one.
5. Not having sufficient credit history
Another challenge for first-time buyers is credit history. Your credit history can also be a final push in whether you’ll be approved for mortgage or have your application denied. If you have less-than-perfect credit or if you have no credit history, there are many things you can revive and get into shape. Things you can do to make a credit history are to taking out a secured credit card or credit builder loans and making timely payments. Insufficient credit history means you don’t have enough experience. If you haven’t used credit in a long time, you might ask if you have a credit score, it is important if you want to borrow money or buy a house in the future.
6. You don’t understand the home buying process
The home buying process can seem tricky specially if it’s your first time and you have no one to guide you. Therefore, here is a comprehensive summarized list of the steps you need to consider:
- Look over your credit report.
- Solve out how much you can afford.
- Get a Real estate agent.
- Get preapproved by a lender.
- Start searching for homes.
- Make a deal.
- Home inspection.
- Get insurance.
7. Property bought was left in bad condition and poor furniture.
Some people are faced with sellers who do not remove all their furniture or refuse to compromise. In that case, you might want to contact the seller and firmly request them to move their belongings right away or else they’ll have to be kept out in the yard. Most likely, the seller will take action..