What do you need to know before you buy a new home? We’ve gathered several tips to help you along the way…continue reading to learn more!
The house you buy may not be forever
Because of the soundness of real estate as an investment, many homebuyers tend to want the biggest house they can get. They may be trying to start families or getting more space for their existing family to grow. Whatever the motivation, buying a house is one of the few times when people try to plan their lives 30 or more years down the road.
Any number of unanticipated changes might happen in 30 years: Your job or your partner’s job may force you to move, or you may decide to change careers. Look for a house that suits your immediate needs and understand that every place is adaptable to a degree. A den or an office can become a nursery, a shed can become a workshop, and a basement storage area can become another bedroom.
Do not become “house poor”
People who end up spending most of their monthly income on a house payment leave little for other debt repayment, retirement savings or building an emergency fund. They find themselves unprepared for an unexpected medical bill or car repair. They also find it difficult to take vacations or make home improvements.
It is important to understand that your upper limit for housing expenses should only be a worst-case scenario. Buy the house you need, not the most expensive house you can afford. You will be happier in your home and in your budget!
Understand the process
There are many factors that go into obtaining a mortgage. First, you and the seller have to agree on a final price, which includes the money you pay for the house and the associated fees. Next, you will need to arrange financing. Each financial institution has to appraise the value of the home, and then compare their estimate to the price you agreed on with the seller. The financial institution also has to check your credit, verify your income and assets, and confirm your employment.
You can help this process by buying a house you can afford, building your credit score by reducing the amount of credit you are using, staying with the same employer and saving for a down payment.
Don’t go it alone
Make SeaComm the first stop on your home buying journey! As your credit union, we want to make the process as seamless as possible. Click here to access our Mortgage Center to apply online. Questions? Call us at (800) 764-0566 or stop by your local SeaComm branch – we are happy to help.