House hunting is exciting and can get tiresome sometimes. It is a great experience to go after the kind of houses you have always dreamed of living in. However, the whole process of buying a house is not as easy as buying medicines over the counter. It does not have to a daunting experience either.
With the right tools and equipped with the right information, you will actually be able to go against popular notions of stress and enjoy the whole process of house hunting. What’s more, you may even be able to find that house you have always been looking for whether you are a first-time home buyer or buying your second-home!
Things to know before you go house hunting
Before you go house-hunting, put together a check-list of items to track the whole process. There is only so much you can remember at any time.
The first thing you probably want to put up on the top of the charts is the budget within which you want to buy your house. Financial planning is a deal breaker. You may have zeroed in on the house of your dreams, but if it is not within reach then you have a problem. This can lead to frustration and high-stress simply because you had not already planned how you were going to manage your expenses.
A home loan repayment is a costly affair and will probably take a good few years, so you need to be covered for the long haul. This means your income should also be able to support this expense. So planning realistically within your boundaries will save you disappointments later. Better still, if you have decided to buy a house, then having a separate savings account to save for the hefty down-payment will also help you manage the financial aspect. Having a meticulous financial record will help you get a few brownie points in being considered for a loan application by banks or other lenders. A high score will be advantageous in determining the monthly payments. If the bank determines any element of risk, your monthly payments may go up. Next, the location where you want a buy a house also matters.
The cost of real-estate is determined by a host of factors such as location, amenities, property size, safety and security of the preferred location along with the economic trends. Invest enough time doing your homework in the neighbourhood you are interested in. You must understand what the location offers and those that you may need to plan for. Keep in mind that you will not be able to tick-everything off the list. So the basic mantra is to keep it simple and realistic.
Once you buy your dream house, the expenses do not end with furnishing and upholstering the place. A house needs constant maintenance and that means repair works or unexpected problems you may not have anticipated. So make plan for an emergency fund to meet these expenses such as a recurring deposit, perhaps.