HouseBuyingTips
© 2010  Janice C. Tatum and Associates, All Rights Reserved     Terms of Service   Privacy Policy
Buyer's guide Buying a house is complicated, especially if it’s your first time. Here are some more tips on how to buy a house the right way so you won’t be disappointed. 1. Start with your credit. Credit reports are kept by the three major credit agencies, Experian, Equifax, and TransUnion. They show whether you are habitually late with payments and whether you have run into serious credit problems in the past. A credit score is a number calculated from a formula created by Fair Isaac based on the information in your credit report. You have three different credit scores, one for each of your credit reports. A low credit score may hurt your chances for getting the best interest rate, or getting financing at all. So get a copy of your reports and know your credit scores. Try Fair Isaac's MyFICO.com. Errors are common. If you find any, contact the agencies directly to correct them, which can take two or three months to resolve. If the report is accurate but shows past problems, be prepared to explain them to a loan officer. 2. Set your budget. Next, you need to determine how much house you can afford. You can start with an online calculator. For a more accurate figure, ask to be pre-approved by a lender, who will look at your income, debt and credit to determine the kind of loan that's in your league. The rule of thumb is to aim for a home that costs about two- and-a-half times your gross annual salary. If you have significant credit card debt or other financial obligations like alimony or even an expensive hobby, then you may need to set your sights lower. Another rule of thumb: All your monthly home payments should not exceed 36% of your gross monthly income. The size of your down payment will also determine how much you can afford. 3. Line up cash. You'll need to come up with cash for your down payment and closing costs. Lenders like to see 20% of the home's price as a down payment. If you can put down more than that, the lender may be willing to approve a larger loan. If you have less, you'll need to find loans that can accommodate you. This is just the tip of the iceberg. You can find out more by clicing the “More Info” button below.

Tips to Help You Pick

the Right House

Keep an eye on the future

When you purchase a house, make sure that you choose one where you can envision living for many years to come. Purchasing a new house and moving into it requires not only large chunks of your effort and time, but also your money. And so, if you stay in a single house for a long time, you can significantly reduce your expenses over the years. Besides, you may even end up riding out a real estate downturn in the process.

Embrace a bit of flexibility

Look for a house that has rooms which can serve more than one purpose. For instance, if you pick a house which has open floor plan, and its kitchen overlooks the family room, the house will allow you to watch your young kids from the kitchen. If your kids are not very young, the same design will be an advantage when it comes to entertaining any guests.

Be true to whatever excites you

Forget about what makes others happy and think about what makes you happy. Do you like to share a single wall with your neighbors and not worry about maintaining your house all that much? If that, a condo may fit you perfectly. However, if privacy matters a lot to you, and you enjoy having household responsibilities, like having to mow your lawn or fix the plumbing, a standalone family home may match your needs more closely compared to a condo.

Pick your neighborhood wisely

Buying a house does not just mean buying a house. It also means picking a neighborhood to spend a big fraction of your life in. So, make sure that you scrutinize your surroundings well before making the final call. Just loving your house will not help you much if your neighbors irritate you or a school nearby bothers you. Along with picking a neighborhood that gives you everything you desire out of it, make sure that the place feels right.

Get something that you can afford

There is nothing wrong with wanting only the best your money can offer you. However, that does not mean that you must shoot for the sky every single time. Overspending during the process of purchasing a house is a mistake that most people make, and it is a mistake that can scar your finances for life. Make sure to nicely examine your financial situation and consider not just your immediate expenses but also any future expenses. Understanding your limits and respecting them is not weakness; it is smartness.

Choose a respectable location

You may have heard this a thousand times growing up, but it is worth mentioning again: the location of your house truly matters. If you buy a house in a busy location where lots of noise bothers you every single day without fail, your decision will bring to you more unhappiness than happiness. Instead of getting too excited by the interiors of a house located in a poor region, emphasize on picking a quiet and respectable area. A house situated in a great spot is sure to give you great resale value, too.

Protect your investment

When you purchase your home you will pay for homeowners insurance at the time of the closing. This insurance not only protects you, but protects your lending institution. Homeowners insurance protects your home from fire, storm damage, personal property, and protects you in the event that someone hurts himself and initiates a law suit against you. You don’t have to purchase the insurance your real estate agent or title insurance agent recommends, you can purchase your own insurance. Here's a website that offers cheap homeowners insurance quotes, and explains ways you can save on your premium.
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HouseBuyingTips
© 2010  Janice C. Tatum and Associates, All Rights Reserved     Terms of Service   Privacy Policy
Buyer's guide Buying a house is complicated, especially if it’s your first time. Here are some more tips on how to buy a house the right way so you won’t be disappointed. 1. Start with your credit. Credit reports are kept by the three major credit agencies, Experian, Equifax, and TransUnion. They show whether you are habitually late with payments and whether you have run into serious credit problems in the past. A credit score is a number calculated from a formula created by Fair Isaac based on the information in your credit report. You have three different credit scores, one for each of your credit reports. A low credit score may hurt your chances for getting the best interest rate, or getting financing at all. So get a copy of your reports and know your credit scores. Try Fair Isaac's MyFICO.com. Errors are common. If you find any, contact the agencies directly to correct them, which can take two or three months to resolve. If the report is accurate but shows past problems, be prepared to explain them to a loan officer. 2. Set your budget. Next, you need to determine how much house you can afford. You can start with an online calculator. For a more accurate figure, ask to be pre-approved by a lender, who will look at your income, debt and credit to determine the kind of loan that's in your league. The rule of thumb is to aim for a home that costs about two-and-a-half times your gross annual salary. If you have significant credit card debt or other financial obligations like alimony or even an expensive hobby, then you may need to set your sights lower. Another rule of thumb: All your monthly home payments should not exceed 36% of your gross monthly income. The size of your down payment will also determine how much you can afford. 3. Line up cash. You'll need to come up with cash for your down payment and closing costs. Lenders like to see 20% of the home's price as a down payment. If you can put down more than that, the lender may be willing to approve a larger loan. If you have less, you'll need to find loans that can accommodate you. This is just the tip of the iceberg. You can find out more by clicing the “More Info” button below.

Tips to Help

You Pick the

Right House

Keep an eye on the future

When you purchase a house, make sure that you choose one where you can envision living for many years to come. Purchasing a new house and moving into it requires not only large chunks of your effort and time, but also your money. And so, if you stay in a single house for a long time, you can significantly reduce your expenses over the years. Besides, you may even end up riding out a real estate downturn in the process.

Embrace a bit of flexibility

Look for a house that has rooms which can serve more than one purpose. For instance, if you pick a house which has open floor plan, and its kitchen overlooks the family room, the house will allow you to watch your young kids from the kitchen. If your kids are not very young, the same design will be an advantage when it comes to entertaining any guests.

Be true to whatever

excites you

Forget about what makes others happy and think about what makes you happy. Do you like to share a single wall with your neighbors and not worry about maintaining your house all that much? If that, a condo may fit you perfectly. However, if privacy matters a lot to you, and you enjoy having household responsibilities, like having to mow your lawn or fix the plumbing, a standalone family home may match your needs more closely compared to a condo.

Pick your neighborhood

wisely

Buying a house does not just mean buying a house. It also means picking a neighborhood to spend a big fraction of your life in. So, make sure that you scrutinize your surroundings well before making the final call. Just loving your house will not help you much if your neighbors irritate you or a school nearby bothers you. Along with picking a neighborhood that gives you everything you desire out of it, make sure that the place feels right.

Get something that you

can afford

There is nothing wrong with wanting only the best your money can offer you. However, that does not mean that you must shoot for the sky every single time. Overspending during the process of purchasing a house is a mistake that most people make, and it is a mistake that can scar your finances for life. Make sure to nicely examine your financial situation and consider not just your immediate expenses but also any future expenses. Understanding your limits and respecting them is not weakness; it is smartness.

Choose a respectable

location

You may have heard this a thousand times growing up, but it is worth mentioning again: the location of your house truly matters. If you buy a house in a busy location where lots of noise bothers you every single day without fail, your decision will bring to you more unhappiness than happiness. Instead of getting too excited by the interiors of a house located in a poor region, emphasize on picking a quiet and respectable area. A house situated in a great spot is sure to give you great resale value, too.

Protect your investment

When you purchase your home you will pay for homeowners insurance at the time of the closing. This insurance not only protects you, but protects your lending institution. Homeowners insurance protects your home from fire, storm damage, personal property, and protects you in the event that someone hurts himself and initiates a law suit against you. You don’t have to purchase the insurance your real estate agent or title insurance agent recommends, you can purchase your own insurance. Here's a website that offers cheap homeowners insurance quotes, and explains ways you can save on your premium.