What Should You Not Do Before Buying A House?
Before home purchase you should not disturb your credit score, avoid new credit lines, avoid missing bills and other payments, avoid major transactions, and avoid job changes, avoid purchasing costly things like cars.
Before you buy your own property, you need solid financial planning. In this way, you can realistically estimate the costs of buying a house or apartment and also plan a buffer in order not to be too financially burdened. This post gives you tips and advice on financial planning for buying a home.
Before you take out a loan, you should compare different offers and get advice particularly important in the financial planning of the home purchase is the equity, which should cover at least 10 percent, better still 20 percent, of the purchase price.
What Should A First Time Home Buyer Know?
A First Time Home Buyer Should Know about their debt payments, emergency funds, saving for down payments and closing costs, loan approvals, best sites, and real estate agents, and long-term planning.
A first-timer should definitely include plans when home financing in order to avoid financial mistakes in advance. Even before you register with a bank to finance the property, you should calculate the ancillary costs of the house purchase as detailed as possible. Buying a house is a so-called legal transaction.
A first-time buyer planning to buy a house must not neglect the ancillary costs. These costs include notary and land registry costs, real estate transfer tax as well as possible appraisal costs, and brokerage fees. The incidental purchase costs can amount to up to 15 percent of the purchase price, depending on the circumstances.
How Much Money Should I Save Before Buying A House?
Saving up to 20 percent or roundabout of your income can benefit you in buying a house in the coming years, depending on some market conditions. Normally if your income is 96,000USD per year, you can save 19,200USD in one year saved after one year. It is 38,400USD after two years and 57,600USD after three.
In addition to your own budget, your equity, and the purchase price, you should consider the house purchase costs in your financial planning. These often drive up the purchase price by up to 10 percent. Your equity should not only cover part of the purchase price, but also the ancillary costs.
These additional costs are also important for your financial planning information prior to home buying: Brokerage fees, Notary fees, Property tax, possibly fees for an expert, Any necessary renovations and refurbishments, Additional financing costs.
What Should You Not Say When Buying A House?
If you like a house then avoid telling your agent that I love this house. Because a realtor may think that he should offer a high price for that house. Moreover, when a realtor tells you a price that is too high from your point of view, then don’t reply with words such as ‘’ you will never get that price. It may seem a sort of insult.
Moreover, don’t tell your offer or estimate, allow your agent to make an offer first. A good property is an investment. Anyone who decides to hire a broker should ask the broker questions. After all, you invest a large sum in a property. If you spend a lot of money, there shouldn’t be any defects that you have to fix after the purchase.
When viewing the property, you have to ask the agent what the average operating costs have been over the past few years. You have to consider that you are financially burdened by the purchase. Operating costs that are too high would be an additional burden.
What Should I Not Tell A Real Estate Agent?
Moreover, don’t tell your offer or estimate, allow your agent to make an offer first If you like a house then avoid telling your agent that I love this house. Because a realtor may think that he shod offer a high price for that house. Moreover, when a realtor tells you a price that is too high from your point of view.
Also, don’t reply with words such as ‘’ you will never get that price. It may seem a sort of insult. And If the operating costs are too high, you may hot hesitate to ask the broker why that is: reasons for high operating costs would be Leaky windows. Poor or nonexistent external insulation.
Also, remember that buying a house does not limit you financially so that your quality of life does not suffer. Therefore, your monthly income and expenses are important factors to see from which salary the house purchase is worthwhile and within which framework financial planning is realistic.