For many new couples, knowing how much they can afford when they purchase a new home can be confusing. This article will focus on some easy tips to help people plan for what they can afford as they house hunt. It can be scary if you are a first time buyer. Did you know that your total debt should be less than 36%? Neither do most people. So let’s get down to the brass tacks and help you.
• Hire an agent. Most people hire an agent because there are way too many things that could go wrong as a self-appointed real estate agent. So please do not look at or buy a house without one. Your agent will be able to help you not only find a house but also suggest a yearly income you would need to buy certain houses in the areas that you are looking at. Plus, an agent will help you in everything including picking a house, negotiating a deal and paper work as well. For most people finding a house in desirable and in-demand areas, such as Herriman towne center in Utah, USA, is not an easy task, but with the help of an agent you will find it easy to do.
• Mortgage Calculator. What is nice about a mortgage calculator is you can play with different numbers and interest rates in order to be comfortable with a certain mortgage payment. There are lots of them online to choose from, and most of them are very easy to use. Just put in your annual income, amount you can afford for a down payment and click on your enter key and poof! The amount of a house you can hopefully afford and you can even change around the down payment. It will calculate the monthly payment as well.
• Get a pre-approved loan. Since it is a pre-approved loan you will know how much you can really afford. From there it is up to you on whether you want to go to the top of your limit or somewhere in between. This is why the mortgage calculator comes in handy. It will help you decide how much house you really can afford.
• Shop around for home owners insurance. There are some very nice savings when you bundle your car, boat, or motorhome insurance with your home. Also the more you shop around the more quotes you will get in order to make an informed decision. Do not shop for the cheapest but look for a high quality insurance because this is going to your home for hopefully a long time. You want the best insurance you can get.
• Pay down your credit cards. By doing this it helps improve your credit score and also can help qualifying you for that dream house you have your eye on. Besides you do not want to go into your brand new house in debt do you? Nothing wrong with more disposable income and a boost to your credit score.
So there are some simple easy tips to help you be prepared to buy your new house. Some things you might have thought of and others, golden little nuggets. You are now ready to go shopping for a new house which you have been dreaming of for a long time.