House buying is a long and tedious process that many first time buyers do not anticipate when they are still at the early stage of buying. Do not be surprised if it sometimes take years before you are actually handed the key to your home.
Having a house to call your own is a dream waiting to be realized. It is important to set this as an attainable goal and to do this to-do-preparations so when you started working with your bank and lender, you have already accomplished and could check off a big part of the house buying process.
Save for a House Deposit
It is often said that your house is probably the biggest spending that you will ever buy in your lifetime. When the year closed in 2020, the average home sale price in the US is at $389,400. Depending on your location, this price will vary but at any case, you really have to save a lot to afford a deposit for the biggest investment that you will also probably spend.
House deposit can also vary and is dependent on the price of the house. Saving for that house deposit is really the first step on the process. Setting aside a big chunk of your income for that purpose is never been easier when you automatically allocate these monies after being paid of your paycheck.
Build Good Credit
While you are religiously saving, it is equally critical to also establish a good credit history. You have to show the bank or the lender that you are a good creditor and are paying your loans on time. Whatever your debts are at the time of mortgage application, a report can be pulled up to show your credit history.
Paying off or cutting down your loans will show the bank or lender that you can afford the monthly repayments of your house. It will also ease your monthly spending because you don’t have other miscelleneous loans to take care off.
Start your Search
Some may say this is the easy part but this is actually something that is worth a long look and research. This process has to simultaneously go hand in hand while you are saving for your house deposit and building your credit history. The research part can be done on your own initially, but you have to eventually need the help of an agent to properly start the buying process.
Researching involves primarily assessing the location and gauging the affordability of the property. Some considerations for finding the right location are proximity to school, grocery, public transportation, crime rate and others. Affordability is a compromising factor and very much linked to the location of the house.
Once you have these three preparations aligned and ready, you are now ready for the next step of the house buying process – to secure a loan. The three to-do-things that i highlight on this post are just the preliminaries but when you do these things, you are one step ahead to realizing your dream home come true.
Thank you for reading.