4 Tips For Buying a Home

The mortgage rates are at a historic low. You may choose to take advantage of the low rates and buy that house you have been eying. Buying a house can be intimidating for first timers, but it does not have to be. Here are four tips for potential homeowners to consider as they look to buy a house.

House Inspection

Make sure to inspect your prospective house thoroughly with at least one other person, preferably an expert like a structural engineer who can examine things like the house foundation. A lot of people do not know to do that and find themselves stuck with an unstable structure that needs significant repair. If that is you, seek professional help for home slab repair.

Emergency Fund

A key thing is to have an emergency fund before you take on a house mortgage, which can add up especially if there are other miscellaneous upkeep, repair and maintenance costs. Having an emergency fund will give you cushion room to fall back on if needed. You want to make sure you have enough in your emergency fund for your family to be able to get by financially for at least two months, but ideally three.

Down Payment 

You also want to make sure to have as much down payment as possible, at least 5 percent and more if doable. However, when you budget for your house, make sure to calculate closing costs and moving-related expenses as well, as they can add up. Also remember you will want to furnish your house, which can also add up. You want to set aside funds for that as well.

Monthly Budget

There are many things you need to do before buying a house, such as getting saving enough for a down payment and emergency fund, as well as getting preapproved for a loan. However, it does not end once you actually close. A closing is only the beginning. You should also plan ahead what your monthly budget will look like once you purchase the house. Calculating this ahead of time will also help you determine how much you should down pay on the house and how much you need to borrow.

The low mortgage rates make it a good market for buyers right now. However, that does not mean you should jump into the housing market without planning and preparation. Buying a house is one of the biggest responsibilities you can undertake in life, and should be approached accordingly.


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