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Even if you are only wondering whether you should purchase a home, you have taken the first step towards acquiring one.
Am I ready to Buy
You do not need a big bank balance before venturing out. Purchasing a house is never easy. However, once you have taken a decision to own one, things do fall into the place one by one. All you need for starters is a steady source of income for the last 2-3 years. Obviously, it helps if you have a record of paying your bills. Even a minor problem with your credit report can be rectified or ignored.
Think Positive
Your mind needs inspiration and it comes from some concrete images (pun unintended!). Read the real estate section of newspaper. Talk to your friends. Visit the communities in news. If the groovy house you first saw seems a bit out of reach, why not try a little farther? Enquire around; there may be plans for the new community. For example, prices in a ?remote´ area out of favor due to lack of connectivity tripled after construction of a new expressway. Knowledge spelt money for those who got the whiff early and bought before others became wiser.
Check the following
- Does your heart say, "Yes, this is where I would like to live?"
- If you like the place, take your wife there to have a look. She has to make a home. She will appreciate it. In case she also happens to be more practical, your decision will be that much easier.
- Do the houses look inviting, spacious?
- How far is it from your place of work? Not in miles, but in time required for commuting.
- Are there any suitable schools nearby? Better check these out.
- Would your wife have to go far from the groceries?
- Are there any public facilities like parks and community centers, not far from your house?
- In addition, do not neglect the hospitals. How much time would it take you to reach the nearest hospital?
- You would of course not like to live in a place where the teenagers list mugging and carjacking as their hobbies. How many houses are occupied? In fact, better check up how many of them have sold out. Mostly salaried people buy houses to live. They normally cannot afford to pay mortgage on this house and rent for another. Normally it does not take much for the place to start buzzing once the first dozen occupant moves in. Then, prices may escalate for late buyers!
Some of these things your broker will tell you. Others you may gather in the local pub, if there is one yet. Reading the local newspaper will help. (Do not believe everything they write). Do not hesitate to talk to officers in police or town hall to verify.
Hire an Agent
Once you have decided on a community, it is always advisable to hire a broker or a real estate agent. Many of these brokers are also experts in the relevant law, and will give you valuable advice on agreements etc.
Check various lenders
These days much of the information is available on the net. Use your phone, or even visit a lending agency. They are the experts. They will ascertain details from your income to the number of children you have before telling you how much loan you can get. Do not ever hide any relevant details. Because once the lender gives you the loan, the risk is always yours. You can of course argue and haggle with him about the loan amount, interest he is charging, and the fees he is levying. This is your right. It is even better to let various lenders compete with each other.
According to the FHA, monthly mortgage payments should be no more than 29% of gross income, while the mortgage payment, combined with non-housing expenses, should total no more than 41% of income.
6. Complain if you feel excluded from any community or house on the basis of race, color, religion, sex, nationality, familial status, or disability. It is illegal. HUD's Office of Fair Housing has a hotline for reporting incidents of discrimination: 1-800-669-9777 (1-800-927-9275 for the hearing impaired). |
