People forget about the tremendous financial responsibility of purchasing a home at their own risk. Here are a few tips.
Get pre-approved: By getting pre-approved as a buyer, you can save yourself the grief of looking at houses you can’t afford. You can also put yourself in a better position to make a serious offer when you do find the right house. Unlike pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history.
Choose your mortgage carefully: When it comes to mortgages always paying tours the principal is to your benefit. Today, the debt the average person will accumulate due to credit cards, student loans, etc. means it’s better to opt for the 30-year mortgage instead of the 15-year. This way, you have a lower monthly payment, with the option of paying an additional principal when money is good. For a lower interest rate you can also buy points. You should always consider buying point only if you plan to stay in the house for a long time, this will save you money.
Do your homework before bidding: Before you make an offer on a home, make sure your real state agent does the research on the sales trends of similar homes in the neighborhood. Consider especially sales of similar homes in the last three months. For instance, if homes have recently sold for 5 percent less than the asking price, your opening bid should probably be about 8 to 10 percent lower than what the seller is asking.