Purchasing or renting a home or apartment for the first time in your adult life is an incredibly outlandish and extraordinary move. It is probably one of the most important decisions, regarding finances, that you can make. You will need to take this seriously because it can mean living happily ever after just as well as it can mean certain bankruptcy!
The first step is… determining if you really need to buy a home or not.
Owning your own house is a significant amount of money, and costs a lot more than simply renting a house. If you decide that you want to purchase your own home, keep these extra fees and taxes in mind;
- Pest Control
- Pool maintenance (if you choose to buy a house that has one)
- Property tax
And all sorts of over taxes and fees that may come up. You may even lose access to certain tax deductions. You are held responsible for paying for all of the repairs and utilities as well, not to mention things like garbage removal (that exists as a tax, believe it or not. Don’t you just love the late stages of capitalism?) and home insurance.
The first real step is to start shopping around for a loan. You will need to be approved for a loan before you buying the house. In some cases, you getting the credit is even more important than finding the right house to buy because it determines whether or not you will be able to afford anything!
It is a good idea to hire, or at least look into, a reputable mortgage broker. These salesmen will look into different loans and credit opportunities that will benefit you the most and can save you a lot of frustration and money in the long run.
You may be surprised at all of the different loan types that exist out there for you to get snagged on! For now, do not worry about ARMS or PMI or anything like that. Just find a reputable bank or investor that you get pre-approved to receive a loan from.
As for what kind of loan and what kind of rate you will be a looking for, a basic fifteen-to-twenty percent rate is standard. These locked rates are probably your best option as well. You might be wanting to consider creative financing when it comes to paying back these loans, but keep your head about you and do not get sucked into this! You want to build and retain wealth when you purchase your home.
If you make the wrong choice about what kind of loan to take out, what rate and behind-the-scenes fees there are, you could end up hurting yourself and your partner (if you have one, that is) seriously when it comes to your finances and your savings account. If the market crashes or drops, you can find yourself drowning in fees with a balance that costs more than your actual house did when you purchased it! We cannot stress enough; be vigilant and be careful about what kind of loan you take out. Good luck in the real estate world!