Here are some FACTORS TO CONSIDER BEFORE BUYING A HOUSE:
How Much Can I Afford
Look at your current income, look at how it is distributed that is how much is allocated to savings and how much goes into expenses. The difference between your income and expenditure is the figure you should be looking at as a monthly repayment option. Consider time. Over what time period do you intend to pay for the property? How long do you intend to reside there? Do you intend to reside there? How long do you intend to keep ownership of the property? Answers about your income and your ideal timeline will assist you greatly when you go shopping for a mortgage.
Decide On Location
Think about the neighborhood that you want to live in. Take into account factors such as crime rate, school quality, commuting time, and neighbourhood amenities, as well as, the demographics of the families in the area. List those criteria that are important to you, and focus on neighbourhoods that meet them.
Decide on the Specifics of the House
Every one has different ideas about how their house ought to be, or even if it ought to be a house. So decide, do I want a house, an apartment or a condominium? Should it be a gated community? How large do I need it to be? Should it be New? If no, what condition should it be in? List all of your expectations as it relates to the house and its contents?
Establish a Time Period for Purchase
When I review my current finances and look at where I want my home and the type I want, what is a realistic time frame for me to start shopping around. In this stage consider also that a down payment and closing cost sum is required up front. Look too at the state of your employment, ask yourself, is my job stable or will I be switching careers in the near future. If the answer to this question is yes, how will I make my payments? A mortgage typically runs for between 15 and 35 years. Am I making this investment on my own, is another question that you should strive to answer
How Much Mortgage Do I Need
Having reviewed your finances and decided on what you want you can now get an idea of how much more you will need to buy the home you want. Weigh this against future debts such as changing your car and major vacations, this will give you an idea as to how much additional money you will need to secure in order to make owning a home your reality.
Shop Around
Look at as many mortgage providers as you can. Compare their interest rates and look at the total cost of your loan, this should include the APR, loan fees, discount and penalty charges. Don’t base your choice solely on the charges but give careful thought to the vendor’s reputation, stability and client services.
Decide When
When you have done all this set a deadline, get pre-approved close to that deadline and then start shopping. This may be done with the assistance of a Realtor or with the help of friends and relatives.
