A home purchase is one of life’s major choices, and for the majority of people, it is a MILESTONE accomplishment. Since a home purchase is a capital-intensive investment, it’s even more important that we make an informed decision rather than a hurried one. However, there are a few things to think about before purchasing your dream house. Before you make your buying decision, use this 5-point checklist to help you.
1. Requirements
Have you asked yourself: Why do I have to purchase a home? Why can’t I rent this apartment? Financial leasing is better than purchasing, as the return on a residential rental is 3-4%, while the home loan is 8,6%. On this question, I have several answers: a) I need to purchase a house because it gives me self-assurance (b) I need to buy a home in order to make savings on costs I would otherwise make (c) my household does not want to live in a rented house because of a lack of certainty of being forced to relocate without a notice (d). Equally. etc.
2. The seller’s identity
Check the residency status or nationality of individuals. If the property is owned collectively, the identity of both owners should be checked; if the seller is a business, firm, or community, the entity’s records are required. If the property is owned by a minor or a person of unsound mind, the seller should have ordered by a competent court to sell it.
3. Location
The location that has to be close to work and is regarded as the determining factor is certainly one of the most important things that need to be taken into account when purchasing a house. Please make sure the LOCATION you select has an “ESTABLISHED SOCIAL INFRASTRUCTURE: MARKETS, SCHOOLS, HOSPITAL, POLICE STATION, CINEMA, AND SO ON). Do not purchase a futuristic venue. YOU ARE IN THE Now, NOT IN THE FUTURE, 5-10 YEARS Out.
4. Examine your mortgage options.
Mortgages come in a variety of shapes and sizes. The most popular type of loan is a conventional loan, which requires a 3 percent to 20% down payment. Keep in mind that certain lenders would require you to pay private mortgage insurance if you don’t put down a 20% deposit. There are also FHA loans, which require a lower down payment and have fewer collateral conditions than traditional loans, VA loans for eligible current and former military personnel, and USDA loans for borrowers in some rural areas (the latter two do not require any down payment). Furthermore, many banks have their own loan schemes, so doing some research is a smart idea.
5. Hire a real estate agent
This is a technically optional move. You can buy a house without using a real estate agent, but there are a few reasons why you shouldn’t. To begin with, the real estate agent can handle all of the research, contracts, and other time-consuming aspects of the home buying process on your behalf, preventing your home quest from being a full-time task. Furthermore, a good real estate agent will have intimate knowledge of the local market and will be able to direct you through the entire process, from house-hunting to closing.
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