A dream home is just a loan away. Yes, it’s
true. Purchasing a home, these days, is now easier with many house loans
provided by various banks. If you are planning to buy a home, this article is a
must read for you as it explains some important tips that will guide you in
buying a home.
Ensure
that your financial status is in good shape
Before deciding to buy a home, it is a must
to make sure if your financial status is in good shape or not. You need to have
enough money for a down payment to make sure you are ready to purchase a home.
It is also important to not put all your money in the down payment as other
unexpected expenses make often rise after closing the home loan. There have been
reports that many successful buyers did not know their credit score when they
went for house shopping.
Opt
for a house you can afford
The choices are many when it comes to
buying a house. However, always opt for a house you can easily afford. Paying
the home loan on a monthly or quarterly basis should not be a financial burden
to you. So ensure that you choose one such house which is in your budget. If
you are a first time buyer, look for special home loans available from various
banks that provide home loans. Also do a research on the various government
sponsored loans for first-time buyers. This will reduce the amount of money you
require to get a home.
Get
familiarized with the related jargons
For first-time buyers who are new to the
market, it is important to familiarize with the processes and various
terminologies associated with home buying. Following is a list of jargons that
are associated with home loans.
Basis
Point
Basis point simply means 1/100th of 1
percent
Closing
Costs
Closing costs are the particular fees
required which is required from processing to closing your loan.
FRM
and ARM
A Fixed Rate Mortgage Loan (FRM) is a type
of home loan which interest rate stays the same for the entire duration of the
loan. Adjustable Rate Mortgages (ARMs) are loans with variable interest rates
which fluctuation is based on an agreed-upon index.
GFE
The Good Faith Estimate is a document
explaining all the costs involved in getting a loan.
Per
Diem Interest
Per Diem Interest is the interest you pay
daily, from the day you close to the last day of the month.
Warranty
Deed
Warranty Deed is a legal document that
guarantees the seller the right to sell the property. This is very important if
you are considering a discounted or distressed property.
Seek
help and advice from an expert
An expert’s views, suggestions and advices
always count. So, consult an expert who can give you guidelines in purchasing
the right property that suits your budget. You can randomly research on the
internet to find out a list of property dealers and experts whose suggestions
and advices you can count on.
