Information: Buying a House
Buying a house is something most Americans want to do in order to fulfill what is called the American dream. Some HUD homes that have went into foreclosure will sometimes need more work done than those that were not foreclosed on. Buying a house is one of the most exhilarating moments in one's life. It gives you a space, a 'real' space that you can call your own. Buying a house is emotionally charged enough, without adding more fuel to the fire by letting your emotions override your common sense.
Renting
Renters could include more REITs (such as VNQ) or investment properties in their asset allocation so they have some real estate exposure to make up for the fact that they don’t own a house. Another strategy that a renter can follow if they want to keep up with their house-owning friends is to use leverage to buy equities so that they can have a large monthly payment as well. Renting is the start of the home owners journey. With your dream home serving as the final destination you will most likely need to take a few stops on the way there. Rental yields are currently low, at 4-5% of a property's value. But if you're paying rent as high as 10-11%, the rental option is not feasible.
Mortgage
Mortgage insurance can help you get into your dream home sooner because it allows you to put less money into the down payment on your loan. And when it comes to protecting your home and your family from the repercussions of financial loss, you want the flexibility offered by a broad range of life insurance products to help meet your family's unique needs if ever you couldn't be there in the future. Mortgage calculators will ask you for a percentage rate sometimes and others will ask for a yearly figure. It can be confusing for a new buyer; so don't be afraid to seek a little assistance.
Mortgage financing -- You’re pre-approved, but is the house? Before a bank will lend you money, it will want a formal appraisal of the property to confirm that there is sufficient equity in it to warrant the loan. Mortgages are arranged according to your mortgage potential which is usually 2 1/2 times your gross income - plus 1 times the secondary income in the case of a joint mortgage. Remember you will normally have to pay a deposit that is usually 10% of the price.
List your criteria
List the criteria that are important to you, and focus on neighborhoods that meet those criteria. List your expenses in a spreadsheet that shows your monthly spending on food, utilities, clothing, gifts, vacations, car insurance and maintenance, entertainment, medical bills and other things. Take into considerations that your utility bills may be higher at your new residence and you may have to deal with property taxes, home insurance and HOA fees that you currently don't worry about. Check out the neighborhood and the community before you buy by visiting at different times of the day and week to learn about noise and traffic patterns. Even if you don’t have kids, check out the local schools to make sure your resale value will be good.
Real Estate Agent
Ask your agent for recommendations. Ask your potential real estate agents and lenders lots of questions! They should seem willing and able to answer any and all questions you may have. Ask them any questions that you may have and make them work for you. Determine if it is a buyer's or seller's market? Ask prospective lenders what they include in insurance costs. Also keep in mind utility and maintenance costs. Ask specifically about the roof and foundation. They aren't experts at all of it (if you wanted to know more about the plumbing or electrical, you'd have to hire the appropriate people to come in and look at that separately).
Buying a house is very important decision of the life. House means the happiness and warmth place of every member in the family. Buying a house is exciting for everyone, but the excitement is more intense, more special when you build your own house. You can look at your house many years down the road and picture it in your mind as YOUR IDEA, YOUR EFFORT. Buying a house is a big step, but often a smart move. Home ownership enables you to build equity.
Useful Link:
www.afford-a-dreamhouse.com
