When you know you are ready to buy your first house, it is quite a feeling. You finally feel like a responsible adult the prospects for the future simply don’t end. You imagine one day, living with your spouse in a happy little home where your kids are out playing in the backyard as the sprinklers on your lawn spray them.
It is really quite the feeling. But let’s snatch you away from dream-world for now and talk facts: You don’t simply see the first house you like, pay for it, and it’s yours. There is a lot more involved in the process. So here is a concise list of everything you need to know:
Keep Your Credit Score and Report in Check
You will need a loan to buy a house and you will need a remarkable credit history to convince your loan dealership that you deserve that loan.
First of all, make sure you check all available credit reports and be sure that there are no errors that you can dispute. If you find any disputes, you can read more about it here. This is because you never know which report your dealer might look up so it’s best to be safe.
Other than that, make sure you’re paying off all your debts on time because that can really help your credit score go up.
Shop for the Best Loan
Don’t stick to the first dealership you come across, make sure you shop around for the best loan you can find. When you’re applying for your loan, you can negotiate with the dealer to get lower interest rates and flexible payment options. This is especially possible if you have a good credit score to flaunt!
Location is Everything
When you see a house you like, assess the entire neighborhood. In fact, the location is more important than the interior. An area with a good school district is usually the best option, even if you don’t want children. Also, make sure the neighborhood is safe and you won’t have to commute to and from work for too long and too much daily.
Try to get a Pre-Approval
A pre-approval forces you to look for a house within a set budget. Buying a fairytale house and paying too much for it is usually a regrettable decision. As long as you have a roof over your head and the location is nice, you can renovate it to look better as time passes.
Other than that, a pre-approval also makes you a serious candidate for buying the house and negotiations with the sellers are much smoother.
Buying isn’t Everything, Renovation is there Too
Make sure you have enough money remaining to efficiently renovate the house. Renovation as a whole takes a lot of time and effort and spending all the money on just the skeleton is not wise.
Think of the Maintenance
If you are one or two persons living in the house, you probably don’t need a very large place. Look for a smaller house if you aren’t a lot of people and if you are away a lot because the maintenance costs could really come to bite you.