Making the move from renting your home to buying a home is an exciting prospect with many important decisions and details to remember. Consult with your realtor and make a budget as well as a game plan of what you want to find in a home. Here are some options to consider when you are looking for a house to buy.
One of the first details that many home buyers consider is how much money is needed to pay out at the closing to buy a home. The amount of money you have saved up can be of great benefit to you because it reduces some of your home purchase costs. For example, when you finance the rest of your home purchase, the larger the down payment you have will reduce the interest you will pay on the loan. And when you put down up to and over twenty percent of your home's purchase price, you can usually avoid adding private mortgage insurance to your mortgage payment. Your mortgage company won't require this extra insurance because you are putting more money upfront into your purchase, thus reducing the bank's risk.
If you cannot put a twenty percent down payment on a home, there are still many options in home buying that require a lesser amount. For example, there are many government-backed loans that only require a three percent down payment. On a $200,000 home, this is only $6,000 as a down payment as compared to $40,000 down for a twenty percent down payment requirement. Check with your mortgage broker for all the different types of loan programs because there are many affordable options with lower down payment requirements to fit your budget.
Another item to consider is the size of home that you purchase. The size will depend on the number of people in your household and if you expect it to grow soon or during the period of time you plan to stay in the home. For example, if you recently got married and are expecting your first child, but plan to add to your family soon, you may want to look for a family-sized home, possibly one with a backyard. You may need a home with at least three or four bedrooms to accommodate your growing family. And if you work from home, you need to add in an extra bedroom or office where you can work in quiet and privacy.
The number of bathrooms in a home is also an important detail, and one you don't want to overlook. A home with only one bathroom may seem adequate, but you should consider other factors that can come up. If you have guests over or a multi-member family, there may be times when more than one person needs to use the restroom at the same time.
For more information about homes for sale, contact a real estate agent.Share
12 April 2021
When I started looking for a new home, I realized that there were a few things I needed to be careful about. For instance, I really needed to focus on finding a home that would appreciate in value, so I began thinking about investing in the right property. After quite a bit of research, I was able to find a great neighborhood that had a big support system for my family. After we found a house we loved, we worked with a real estate agent to procure it, and it was really nice to feel like we belonged somewhere. Read this blog about ways to find amazing pieces of real estate the first time around.