There are many different things that will go through your mind as you think about whether or not to buy a home. We are faced with quite a tough economic scenario so we should realize the fact that it is more complicated than ever to actually be able to afford brand new homes. Buying a home is a really important decision so we talked to Yigang Tang in order to see how to determine whether or not a person is actually ready to buy a brand new home, together with tips that should be considered if this is the case.
When Not To Buy A Home
You should never buy any home if you do not actually plan to stay for a while. It is really important to remember this because you just throw away your cash. Try to consider buying homes only if you will stay there for at least 5 years. As you do this you manage to cover overall transaction costs you face during purchase. When you do not stay there, you end up losing a lot of money, especially if the local housing market does not grow in value. When housing prices are falling, it is hard to even break even.
Improve Your Credit Score
Whenever you want to buy a home you need to be sure that you have good credit. Housing debts are normally quite high and most people are going to need financing. A mortgage is often necessary so when you go to the bank it is easy to not be approved when credit score is too low.
A very good idea is to basically take around 2 months out of your busy schedule and go house hunting. At the same time you need to get your credit report. See that everything in it is accurate and understand exactly what you can afford and what you cannot afford.
Going Over Your Budget
One of the biggest mistakes that you would make is to buy homes that are over budget. Basically, one of the real estate rules that you can easily use is to own a home that is under 2 times how much you make in an entire year in value. It is one you should not actually believe. What is really important is to look at your bills. Think about how much the mortgage is going to strain your monthly finances. The idea is to not put yourself in the unwanted situation in which you end up being bankrupt. This could happen even with some homes that are considered to be great according to the rule mentioned above. The only real way to protect yourself is to do the math.
There are many things you are not going to understand about real estate. This is completely normal and there is absolutely nothing wrong with asking for help. When you are a relatively inexperienced buyer or even a highly experienced buyer, you need to talk to agents and people that could help you make the best possible choice.