Are you gearing up for your first home purchase? You are about to begin on a long journey, which if you are not careful, can put you in a spot that can bother you for a very long time to come. The logic behind this entire exercise is simple- be careful, practical and systematic.
There are a few steps that you need to be very vigilant about when you start your hunt for a new house, for the first time in your life. These involve all aspects of the purchase- real estate trends and markets, financial planning and most importantly systematic and thorough research into the product of purchase.
As you embark on this journey, the first step that you would counter is your budget for the purchase. In case you are planning to go for a mortgage loan, then the procedure is quite lengthy. For this, look at your present income and the bank balance that you possess. For starters, you need to have at least fifteen percent of the allocated budget to pay upfront as well as an additional amount to take care of regulatory fees. This is because most lending institutions finance only up to a maximum of eighty five percent of the price of property, and this excludes the legal and registration charges connected with the purchase. Hence, you need to examine your bank balance. As you analyze your income and expenses, ensure that you have at least forty percent of your income that you can save every month. This is the benchmark that normal banks earmark as monthly mortgage payments. You need to prove that you can match this amount and set this aside for monthly payments.
As you finish your financial analysis, it is time to turn to the market. Shortlist properties that fall into your budget and then research on these properties. The research should include history of builder, performance of his previous constructions in terms of maintenance and quality of construction as well as financial stability of the company. This gives you an insight about the construction company and helps you in your choice of the product. As you close in your choice, the last step that is involved is the lending aspect.
Speak to banks or lending institutions that lend money for home purchases and seek data on interest rates and down payments required. Scan the financial markets on trends related to interest rates. This is vital as it gives you a clear picture about the path taken by banks in connection with lending interest rates. If these are pointing to further reductions, then it will be prudent to choose floating interest rates, as the rates might come down in future and you can take advantage of it. In other cases, if found to be spiraling upwards, this allows you to decide on a fixed rate of interest, something that will insulate from the increases that may occur later.
Scanning the documents related to the acquisition is also important, but in most cases the bank and their legal team help you out in finishing these formalities without any hassles. In case you are planning for an outright purchase, then it would be advisable to hire the services of attorney, well versed with legal documentation related to real estate.
These basic steps shall ensure that your dream home turns out to be as good as your wonderful dream and that you shall cherish it for your lifetime.
Homes that reflect beauty at Waddell AZ Real Estate and West Phoenix Valley Real Estate.
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