If this is the first time you are contemplating buying some property, typically a house, which will be your principal place of residence, you should consider the following tips on purchasing property before you go in and sign the title.
Do not buy your home if you plan to shift soon
If you anticipate a move away from town anytime before three years after buying your property, it may not be a good idea to buy. Renting a home will prove to be a cheaper proposition. With the rising costs of buying a property, such as the taxes, registration fee and the lawyers fee, may amount to much more than the amount the property may appreciate by in that short period of time. And in a falling market the losses will be even worse.
Clean up your credit score
When you have decided to buy your home you must take stock of your credit ratings. A bad credit rating will attract a higher rate of interest and in the long-run this will add up to quite a bit. So, a few months before you start looking for that dream property, you should review your credit score and take some remedial action if required.
Buy a home you can easily afford
Getting financers to finance your home is an easy task these days. However, do not go in for a property where the mortgage will be more than you can comfortably afford to pay each month. One never knows when the tide will turn against them and this is the main reason we must always live within our means. It is easier to repay a small mortgage than a hefty one. Buy a property you can add portions to later rather than going in for a property that will finally be a burden on your budget both, vide the mortgage and the maintenance.
Research and compare loans
Do some research and save yourself some huge bucks in the bargain, literally speaking. With most loans – including cash loans, business loans, mortgages, short term loans, etc – you need to be extra attentive when going through the Terms and Conditions.
The things you need to look for in the T&Cs include; down payment, interest, part-payment penalty, pre-closure fines or fees if any and how much is the minimum part-payment you can make towards the loan. Some lenders will try to stretch out the tenure of the loan as much as possible. They will include some small print preventing you from making huge part-payments towards the mortgage. Keep an eagle eye out of such terms. You should have the right to repay the mortgage as quickly as you want to.
Look for amenities where you buy
Does the district you are planning to buy have good schools and hospitals? Is the crime rate acceptable or outrageous? What are the government’s development plans for the area? These are some of the pertinent questions you must ask – the appreciation of the property depends on these factors.
Get your loan pre-approved
Before you begin looking for a property to purchase get your loan pre-approved. This will ensure that the funds are available from the lender when you do locate the property of your dreams.
Get a professional to look at the paperwork
Get a professional to look at the paperwork of the house just to see if there are any outstanding debts against the property. These could include taxes, utility bills and other loans taken against the property.
Have the place inspected
Get a house inspector to inspect the property for pests such as termites, mould, rodents etc. The professional may even be of help inspecting the legalities of the property.
Following these tips will ensure that you get a property within your budget that you can easily repay and will also guarantee a hassle free transaction.