The time has come and you are now ready to buy a new home. The purchase of a new home will by all likelihood be the largest investment you will make in your lifetime. So why rush in to a decision that will affect you financially for 30 or more years. Even if you sell your home within 5 to 10 years, the type of mortgage you obtain will have a large affect on the equity in the home.
The first question you should ask yourself is how much you can afford before you begin your journey towards home ownership.
There are many factors that go into determining what you can afford to pay for you new home. The main factors are income, debt, down payment, and the term of the loan set by the lender.
When you are ready to proceed with your home purchase, you should never just blindly start filling out multiple credit applications. Rather, you should get a copy of your credit report from an online provider. With your credit report in hand, begin talking with lenders about interest rates, terms, etc to find a lender that is right for you. Shop around and compare lenders before moving forward.
Unless you have experience in the real estate industry, dont think you can go at this alone with no assistance. Real estate professionals with years of experience and knowledge about real estate transactions who can help you make your transaction run smoothly. Use their experience to your advantage. Yes, you may have to pay some fees, but these fees pale in comparison to making a mistake that you will have to pay for over the next 30 years.
By no means am I suggesting that you hand them the keys and let them run the transaction any way they see fit. You still need to educate yourself and remain in control of your real estate deal.
Nearly all agents are paid a commission for their work on the real estate transaction. They have a vested interest in helping you purchase your new home.
Hubert Miles is the founder of Waterfront Houses USA, an online listing service that provides Oceanfront House and Ocean House available in the US and Canada.
categories: real estate,home,house,property,land,mortgage,finance,business,buying a home,home investment,real estate investing,investing
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