The national rate of homeownership in the US is 64.8%, which means around 2 out of 3 adults own property.
If you’ve been renting and sadly watching your friends become homeowners from the sidelines, then maybe it’s time to change that. While owning property comes with its own set of challenges and responsibilities, it’s nice not to throw away money to a landlord, after all.
But you can’t jump into homeownership. Here are some important things you need to do before buying a house.
Check Your Financial Health
Obviously, the more you have in your savings account, the better. But just because you have 5 figures in there doesn’t mean you’re ready to be a homeowner yet.
In addition to having a healthy savings account, you also need to have a good debt-to-income (DTI) ratio. This is where your expenses shouldn’t outweigh your income. In general, lenders want to see a maximum ratio of 43%.
Determine What You Can Afford
Buying a house isn’t as simple as paying the ticket price. You’ll also need to factor in things such as the deposit (using a deposit calculator is handy), inspection, appraisal, and title services.
After you buy residential property, you’ll have to pay for property taxes, homeowner’s insurance, and repairs. Make sure you’ve got enough left in the bank and you’re making enough money to cover these things.
Make Sure You Have Good Credit
It’ll be tough getting a mortgage loan if you don’t have good credit. If you don’t know what your credit score is, find out pronto.
Then sit down and go through the list to make sure there aren’t any errors. If you find any, then you should dispute it with the credit reporting company. When errors are fixed, your credit score will jump up quickly.
Otherwise, do what you can to show you’re a responsible person. Make sure you’re paying your bills on time, as only 1 late payment will hurt your credit score. Lower your debt as much as you can and don’t open new credit lines.
Work With a Realtor
You can technically buy a house on your own, but we don’t recommend that. A good realtor will know the market, so you’ll have access to property before others do. They’ll also go with you to viewings to point out flaws you may not notice.
The places you should be checking for flaws are, molds; wallpapers; drainage system; vents; etc. If you want the best drainage system idea for your indoors, check out excellent stone grating to cover drains and get the modern look for your estate. You can browse channel gratings from this website and get your perfect fit.
More importantly, they’ll know what paperwork you need to sign and when. It’ll make the home purchase process a lot easier and smoother.
All of the above make it well worth the money spent hiring a realtor.
Good Luck Buying a House
Now that you know how to prep for this milestone, buying a house will be much easier.
Mainly, it’s important that you’re realistic about what you can afford. Buying property is a long-term commitment, so make sure you’re smart and don’t overextend. Having the best realtor on your side will definitely help!
If you want to learn more about becoming a smart homeowner, then check out the rest of our blog page now.
