8 Things You Should Do Before Buying a House
There are many things you should do before buying a house to make sure that you’re happy with your new home for many years to come.
It’s common to dream of the day when you can buy your own home. It can be easy to get caught up in the excitement, but purchasing a house is one of the biggest financial decisions you make. There are many things you should do before buying a house to make sure that you’re happy with your new home for many years to come.
Build Your Credit
With a better score, you will be eligible for mortgages from more lenders. You’ll qualify for a better mortgage rate because lenders charge higher rates to high-risk applicants. Pay down debts and use less of the credit you have available. Pay all of your bills on time for several months. Review your budget and make sure you know how much you can afford to spend on your mortgage each month. You should also check your credit report to ensure there are no mistakes on it that may impact your score.
Research The Neighborhood
Before you buy a house take time to use people finders people search. Check the local area to find out if there are high-risk offenders living close by. Proximity to known offenders can affect property values and impact your ability to resell your home later. You may also feel less comfortable at home if you don’t feel safe. It’s a good idea to check on local crime statistics as well so that you’re confident you’re buying a house in a safe neighborhood.
When you buy a house you’re also moving into a community. Do you have children or are you planning to? Check up on local schools and neighborhood parks. You should also investigate whether you’re close to your favorite stores and entertainment centers. You won’t be happy in your new home if you always have to drive several miles to participate in activities you enjoy.
Learn about Mortgages
Mortgages can be fixed-rate or variable. They can last 15 years or 30 years. Some require a high down payment; others require a low down payment or no down payment. Understanding the different types of mortgages available will help you make good financial decisions. You may decide to wait a few more months to have a higher down payment or opt to search for a house in different areas where no down payment is required.
Find the Best Mortgage Rate
Turn to reliable resources to find the lowest home loan rates available on the market. The difference between a 3% loan rate and a 4% loan rate on a $160,000 U.S. mortgage can be as much as $30,000 more in interest over the life of their loan. Take your time to explore all of the mortgages you qualify for to ensure you get the best rate possible.
Test Your Commute
Drive times can vary significantly at different times of the day. Are there a lot of school buses on the road that may slow you down? Is there a chance you’ll be stopped at tracks waiting for commuter trains to pass? You will know if your commute is feasible if you experience the drive before you buy the place.
Visit During Day And Night
Neighborhoods can appear quiet and serene during the day when most people are at work. They may be much busier at night when people are home. Does the street in front of your house fill up with cars? Are there trains nearby that blow the whistle at night? Is your prospective new house on a commuter route? Visiting during different times of day can help you get a better sense of the neighborhood.
Get An Inspection
Home inspectors examine houses with an impartial, trained eye. It’s always a good idea to get an inspection because it will ensure that you negotiate a better sale price to compensate for repairs if there are things that need to be fixed soon. A leaky roof, old pipes and outdated electrical are all examples of structural issues that can cost thousands to repair or upgrade. Home inspections help owners avoid unpleasant, expensive surprises after you move in.