It is very important to be prepared before buying a house and it might be the biggest investment you would ever make. If you are planning to purchase a home for yourself then you should follow below mentioned basic guidelines.
Guidelines to follow
- Is it worth it? – It is much cheaper to buy a home rather than opting for a rental house. There is no correct or wrong answer for this. Buying a Home has its benefits as well as few disadvantages, however even if you opt for renting, it is the same case. Hence you need to take time out and weigh the benefits as well as the drawbacks yourself.
- Understand about the house buying process– Once you have decided to buy a house, first thing you have to do is to learn all about the process of purchase. There are many things you need to be aware before you take the big leap like don’t think it as an investment, don’t buy a house if you are not planning to stay put, don’t trust the agent always and never get emotionally involved in the process.
- Conduct a thorough research about your prospective home– After you have decided on the house which you would like to buy, you have to learn more about it before you plan to give a deposit for it. Find out from your agent how long it has been put up for sale on the market. If it is has been for a long time in the market without any offers, then it might be overpriced or else the market would be slow. Also try to find out when the previous owner purchased it and how many years he stayed in that property. Beware that sometimes there would be other reasons for selling a house at low value. Most importantly, do a proper research on the neighborhood.
- Save for down payment– Even though it is possible you could buy the house without giving a down payment, you would get better rates, would be able to get more loans and smaller mortgage payment. As soon as you plan to purchase a house, you should start saving for the initial down payment.