Are you a home buyer eager to choose a house of your dream? Here are powerful tips for buying a house in 2014. Search for all tips below to choose the best house that meets your request.
11 Tips For Buying A House In 2014 That Work – How To Buy A Good One
1. Check House Selling Prices In Your Area
There are various websites of association of realtors can give you ideas of how to buy a house. So, search for good houses with their good prices and have the best decision on your purchase.
2. Think About Your Affordability
Use bank rate’s mortgage calculator to know what your payment would be. To know the maximum you should spend, use Real Estate’s affordability calculator.
According to experts, homebuyers should look at the budget before determining to buy a house that fits their finance. Buyers should not spend over 28% of income on house investment. If it goes past 30%, you will be in the risk of becoming poor.
3. Uto Date The Real-Estate Climate
When you plan to buy a house in a certain area, ask reputable real-estate agents about the prices whether they continue falling, rising soon or hitting the bottom?
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4. Don’t Buy If you Don’t Stay Put
If you buy a house but can’t commit to stay there, you will lose your money if you don’t sell it sooner, even in the rising market. When the market is falling, it is really a worse proposition.
5. Buy A House Near Good Schools
One of great tips for buying a house is searching for those that are near good schools. In fact, they are places with top priority for homebuyers. When you want to sell your house, a district with good schools will help increase property values.
6. Get Professional Help
Though Internet gives homebuyers access to home selling listings, most buyers prefer using professional and reputable real-estate agents to have the best decision on buying their houses.
7. Choose Between Rate & Points
When you pick a mortgage, you may have options of paying additional points and rate: the portion of interest you pay at closing and in exchange for the lower interest rate. Though you will stay in this home for a long time, just say 3 to 5. It will be a better deal to take points and a lower interest rate can help you save more money in a long run.
8. Get Pre-approved Before Hunting House
Getting pre-approved will save you from looking at some houses that you can’t afford to buy and this task also helps put you in better positions to make a serious offer of buying a right house. Don’t get confused due to pre-qualification, based on your cursory review of finances or the pre-approval from the lender, based on your credit history, actual income and debt.
9. Make A Bid
You should know the sale trend of neighbors’ house the last 3 months before buying a house in this area. If houses have sold at 5% less than the price you asked, make a bid, which is about 8 to 10% lower than the price the seller asks.
10. Hire A House Inspector
Your lender can require home appraisals. This is a way to determine the value and price of the house you have to pay. Actually, you can hire a house inspector with experience to do surveys in areas where you want to buy your own house. The inspector will point out weak and strong points of different houses in this area. Hence, you will consider choosing the best one.
11. Rent Or Own
Make clear that when buying a house, you just have pay a large amount of money at first, then you will save monthly house hiring cost. However, if you pay 35 percent of house renting fees less than the fees you have to pay for your own house, including property taxes, house owner’s fees and mortgage, you should continue renting. This is a master choice.
12. Finances & Buying A House
Buying a house actually associates with a financial whammy.
Firstly, people have to assemble cash for both the down payment and the closing costs. Then, to buy a great house you are going to live until the end of our life, convince some banks to lend you more staggering sum, about 80% of the purchase price.
Get a copy of your credit reports and know exactly your credit scores. If your credit score is high, you will have good chances to get interest rate.
When it comes to tips for buying a house in 2014, you should know that the economy hasn’t been developing again. Most lenders want to get 20% of the down payment. If you put down more than this cash, your lender may approve to give you a bigger loan. If you have less money, you have to search for other potential lenders, including public and private agencies.
Remember that when your down payment is under 20%, you may wind up to pay mortgage insurance. This is a net that protect the bank when you fail in making payments. PMI add 0.5% of your loan amount to mortgage per year. Therefore, for instance, if you finance $200,000, the PMI will annually cost $1,000.
When you have considered your down payment, be sure you have got enough to cover closing costs. These may consist of loan fees, the appraisal fee, inspection fees, and attorney’s fees and so on. They can add up to over $10,000 – and run up to 5% of mortgage amount.
Next to powerful tips for buying a house in 2012, if your available money does not cover all your needs, you still have several options. You can withdraw dollars without penalty from your Individual Retirement Account. (Though you have to pay taxes for it). Besides, you can also receive cash from your parents or close friends without triggering gift taxes. Actually, gift taxes can be paid by donors, not recipients.
13. How To Deal With Monthly Bills
Your ability to pay monthly bills is an important factor in buying a home.
Instead of leaving a cushion in bank accounts, take a look at what you will spend your money on. Everything from energy bills, restaurant bills, dry cleaning bill and so on. Then, figure out how much money you’ve left after you paid those bills. Don’t forget some changing factors in expenses like increased bills, taxes or insurance, or occasional visit.
14. Helps From Neighbors
How do you think about neighbors’ help? Actually, if you have good relationships with them, you can ask for a loan. Remember to make everything clear in papers as an evidence.
15. Search For A Mortgage
Think about a long-term plan when you explore mortgage options. You might be a person who never plans to buy a house, so you are more interested in a fixed-rate mortgage. But, other couple may look at that home as a property that they want to own until their new baby is born. They may want a rate mortgage.
Shopping for a mortgage is a good idea. Banks may give you different terms and interest rates. When shopping, make sure that you can compare apples to apples. Hence, ask about the same types of amounts, terms and loans to have a better understanding about the best deal.
16. Get The Support From Banks And Governmental Organizations
Recently, there has been media attention to tax credit that’s offered to qualified homebuyers. Some governmental organizations and banks offer homebuyers with certain criteria such as low down payment and low interest rate loans. This is an idea that is used by many homebuyers because this support gives them more confidence to buy their good houses, especially for first-time buyers.
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17. Find A Reputable Or Experienced Real-Estate Agent
A right and experienced real estate agent will be your insider to buy a good home. So, trust one who can give you valuable advice to choose the perfect house. You can ask people who have ever buy their first house or search for information of different real-estate agents or association of realtors on Internet or newspapers.
Moreover, it is necessary to know that housing market is not different politics, it is basically local. Each city has a team or center of experts to guide you in this field.
So, find an agent, which represent your interests. Sure, about 85% of home sellers like to list their homes to an agent. Of course all agents work for sellers, not you. They are paid, based on commission, from 5 to 7% of home purchase prices, so you will have to pay more on the interest.
There are hundreds of Web sites helping connect buyers with homebuyer agents, among them House.com, RealEstate.com, HomeGain.com, E-loan.com, LedingTree.com, CNNMoney.com, HSH Associates or Bankrate.com. These sites provide you with nationwide lists of mortgage interest rates and a lot of related information about the real-estate market.
Don’t limit to search for these sources. Once you have grat ideas of rates from lenders, get on your phone to community banks or any institutions with you have a good relationship. Ask whether they can beat the national rates. As usual, local lenders can offer a deal easily because they know the local market and want to keep their clients.
You may also consider working with a mortgage broker. The mortgage brokers are not paid directly by you but they are paid by banks. However, the fee is usually from 1.5 to 3% of loan amounts. You can also use search engines to find out the lists of real mortgage brokers.
I’ve shown you 11 tips for buying a house in 2014. If you plan to have a new one, do not miss out these powerful tips. I hope they are helpful for you!
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