Many people will go out of their way to get a good property for buying as their next homes, only to be disappointed when you are unable to raise the required funds. Here are some tips to consider when you need to find the money for paying for a house:
- Get acquainted with many lenders
Get ahead of your search for funds by meeting a few lenders. This is important even before you start making offers for any house. In most cases, once you make an offer for a house, there will be a very short period to arrange your finances and buy the house.
Different state laws also have variations on the number of days you get to qualify for the option of terminating the house-buying contract and getting back your deposit. Prior research will assist you to be free of stress when starting the home buying process. It increases your potential of getting satisfactory financing once you sign a contract.
- Get the real picture of how much you can afford
In addition to the principle and the interest you pay on your monthly payments, there are taxes, home insurance, and mortgage insurance that you must pay. Thus, it is wrong to rely on only premium and monthly payments as a way to determine the affordability of your new mortgage. Moreover, different house sizes and their location influence their maintenance costs.
You will also incur utility bills for the house and other homeowner association fees. Moreover, your income could also be inadequate when you have other debts. Your credit score affects how much lenders will be willing to give you. Once you have a perfect picture of your financial position, start eliminating debt obligations, then lower the cost of your desired property by making compromises.
- Start shopping for loans and settle on the best based on your needs
After you take care of finances on your side, now go ahead and shop for finances. When you are getting a mortgage, you already know what you can raise on your own, and have already lowered the cost of your new house to what you are comfortable affording.
Lenders have different interest rates and loans differ depending on their current offers. You must make a decision on your monthly payments and the duration of the loan. Often, short period mortgages of about 15 years have higher monthly repayments. On the other hand, long length mortgages of up to 30 years will come with relatively lower monthly repayments. However, remember that the longer the mortgage, the higher the total interest paid.
Get a loan office to take you through the advantages and disadvantages of different mortgages. Then work out a good combination of what you can afford as monthly payments. Include the borrowed amount and the length on your loan when you are making the final decision. The loan office will help you draft the desired mortgage characteristics that will ensure your current lifestyle does not suffer greatly just to get the new house.
You will use the draft plan to compare different market offerings of mortgages. Your assessment of your personal financial situation would come in handy when choosing where you stand the most prospects of getting the loan.
Get Familiar With Different Types of Property
Real estate agents are very territorial when it comes to their real estate location and type. Even if the location is only a town away from other real estate agents in town, each can still specialize in the same type of property. Luckily, for many real estate agents, there are different types of real estate properties they can choose to show and sell; however, they must need the proper education and license to do so.
AGRICULTURAL PROPERTY – Agricultural property is farms, ranches, land, orchards, and timberlands. This type of property requires a licensed agricultural real estate agent to sell to buyers. Also, churches, cemeteries, schools, and government-owned land are “special-purpose” properties.
INDUSTRIAL PROPERTY – Industrial property, confused with commercial property, is warehouses, factories, power plants, and land in industrial districts, industrial property also has special real estate agents who specialize in industrial property.
COMMERCIAL PROPERTY – Commercial property gets confused with the industrial property because sometimes businesses start their business in a building that is considered industrial property (however, the city must approve of this). Commercial property is shopping malls and centers, offices, parking facilities such as parking garages and carpool stations, hotels, motels, and theaters. With the commercial property comes zoning laws and certain restrictions, which is why anyone looking for the commercial property should hire a professional commercial real estate agent who can answer any questions for commercial properties.
RESIDENTIAL PROPERTY – The most common throughout the real estate industry would be residential real estate. Residential real estate is exactly how it sounds, anything where a person can live; townhomes, single-family homes, multi-family homes (if less than five units in the building), duplexes, etc. Apartments are not considered residential property because there are more than giving unites in the building (any building with more than five units is considered commercial property). As many people already know, residential property is for sale in rural, urban, or suburban areas.
As you can see, you must do your research before diving into a property of any sort. Many laws and restrictions come with buying a property, whether the property is a residential property for sale, or agricultural property for sale.
Problems That Will Lower A Property Value
Much has been written about how to increase property value, but some things will lower property value when it comes time to buy a house.
Buyers want a good roof on the house. If it is leaking, make sure to fix it before trying to sell the house. It is a deal-breaker for most buyers. If it has left discolored marks or damage inside the house, take care of those at the same time. Buyers also want to know how many layers are on the roof. Is it time to tear off the old roof and start again?
2. Environmental Concerns
Asbestos has been a problem for homeowners for a long time. If you have asbestos in your home that you want to sell, it needs to be removed by a professional and documented. More recently, black mold has become a major problem. It also needs to be taken care of before you try to sell your home. Don’t give the potential buyer a reason to move on to the next property.
3. Outdated Appliances
Buyers usually want new appliances, so go ahead and replace them with new ones before trying to sell your home. Most buyers prefer stainless steel appliances because they look great and are easy to keep clean. Many buyers also prefer as many modern conveniences in the kitchen as they can get. For example, consider buying a top-of-the-line double oven. Make sure everything sparkles when showing the house.
Buyers want quiet neighborhoods where they feel safe. They want to be close to grocery stores, restaurants, and other shopping centers. They want good schools. It pays to be familiar with the area where the home is located. Know the major routes to businesses. Point out how well the house is located in a neighborhood. While we can not control where the property sits, being an active citizen may have stopped some of these things from moving into the neighborhood in the first place. A privacy fence can block some unsightly messes from potential buyer’s eyes.
5. List of Honey Dos
Potential homeowners want a home that is ready to move into. Yes, they will do their own decorating, but they want things to be ready to do the finishing touches. They do not want to be burdened with a whole list of little things that must be taken care of. Take care of all the little details before showing the home. That screen door that needs to be replaced should be replaced before showing the home. That plug that is not working needs to be fixed. That window blind really needs to be replaced. Stop putting off the honey-dos and do them before trying to sell the home.
Besides the house, the second largest purchase many people make is their cars. Therefore, people want a place to keep them protected. Most people have at least two cars and want room for both of them. If the house you are trying to sell has no garage, consider if you can build one. People also want storage in the garage, so consider adding storage options to the garage. If your garage needs a good cleaning, make sure and do it before showing the home. Do whatever you can to make the garage look as large as possible.
7. Old Trends
We can all count trends that have come and thankfully gone in décor. If those items are not gone from your home, it is time that they leave. Paint all walls a neutral color before showing the house. The teenager’s black lightroom really needs to be replaced with a room featuring natural lighting.