Buying home in the US can be daunting and frustrating especially if you are a new resident in that place. The tendency is to go to the first house that suits your budget even though this is not your kind of preference or perhaps you may continue to rent. Below are quick tips that could guide you if you are a 1st time home buyer in the US.
1. The first and the most important thing to consider is your long term goal and how this home ownership fits your plan. Make your rental payment into a mortgage amortization that would ultimately own you a home. Some people believe that having a home can be a sign of independence.
2. Shop around and compare the selling price. However, you can also search online to have the general idea of how much you should pay for.
3. See if you can afford to pay for it. Use mortgage calculator when doing a computation.
4. Determine the total amount of the monthly housing including the insurance and the taxes. In some other places, paying insurance escrow and taxes can double the payment of your mortgage. However, according to the insurance information institute, the annual premium average ranges from $477 in Utah only up to $1,372 for Texas.
5. Determine how much you should pay for the closing cost. The closing cost includes original fees, settlement fees, title, prepaid items, homeowners insurance, and title. However, you can see the average closing costs within your state by looking at the closing cost survey.
6. Look at your finances and determine if you can afford to buy a home. According to some experts, buyers spend at least more than twenty eight percent of the income regarding housing costs only. If you go for more than thirty percent, you will end up bankrupt.
7. Speak with reliable real estate agents in your locality regarding the real estate. Ask if the prices will continue to fall or if will rise in the near future.
8. Weigh things around. Buying a home can be a great way to earn an income while maintaining an investment can be laborious and very expensive. However, dealing with the maintenance like roof repair, fencing, and wall paintings can drain your budget since you have no more landlords that you can rely on.
9. If buying a home in the US is really your goal, then close the deal. Settlement is a fast process and all important paperwork must be signed. The closing procedure is held in the office attended by the buyer and the seller.
10. Once all the settlements are completely done, it’s time to move to your new home. You are now the owner of your home and you must be proud of it. The settlement papers that you received must be kept and get hold of them. Later on, you can use them to establish your tax deductions for the whole year.
Lastly, just enjoy your new home. Being a 1st time home buyer in the US sometimes stressful but the most important thing to consider is that home ownership is a wonderful and exciting experience!