Buying a new home is an exciting and tiring ordeal. However, the thrill of moving into a new home can often overshadow the frustration that comes with searching, negotiating, and being out bided. The home buying process is very lengthy. Thus, you should be prepared to devote a lot of time and energy to making your dream a reality. Here are a few tips to help smooth the home buying process.
Fix Credit Blemishes and Errors
Credit reports are critical to the home buying process. Sadly, many young adults and first time homebuyers minimize the importance of maintaining a good or fair credit rating. Although various mortgage programs exist to help bad credit applicants get approved for a home loan, these loans have higher interest rates. To ensure a low rate mortgage, which will also lower your mortgage payments, improve your credit rating.
If your credit score is at least 680, lenders consider you a prime candidate. As a prime candidate, you qualify for a low rate mortgage. On the other hand, those with credit scores below 600 can expect considerably higher rates.
Before applying for a home loan, check your own credit score. If your score needs a little improvement, delay purchasing a home for at least six months and raise your rating.
Choosing an Affordable Home
Naturally, pricier homes are more appealing. However, if buying a new home, realistically determine what type of home will fit into your budget. Many mistakenly purchase expensive homes, and can barely afford the payments. Avoid becoming "house broke." Ideally, mortgage payments should be no higher than 36% of our total monthly income. This way, you can comfortably pay your mortgage and care for other household expenses.
Get a Lower Interest Rate with a Down Payment
Although down payments are not mandatory when purchasing a home, they will help you secure a low rate mortgage. Moreover, with a 20% down payment, you do not have to pay private mortgage insurance. Planning for a down payment takes time and discipline. It may require cutting expenses, or sticking to a strict budget. However, the results are worth the sacrifice.
Thursday, May 8, 2008
Security When Buying A New Home
The potential home buyer has many things on their list for what they want in a new home and while the style of the house, the amount of bedrooms, a modern kitchen and other things are important because this is the largest purchase a family will make.
There are some very important items that the potential homebuyer should have on their list and these are in the area of security for the home.
When choosing a home it is important to know the type of neighborhood the home is in, how many break-ins have occurred in the neighborhood. It is also important to check the landscape of the home and decide if any bushes, shrubs or trees can be cut away from any parts of the home that could hold an intruder hidden away in the darkness. Does the home have a security system installed, if it does not, if it is an older construction then it can be fitted for a wireless home security system and newer construction can be fitted for a wired home security system.
There are other things that also need to be taken into consideration when looking to purchase the perfect home, does it have motion lighting or does it need to be fitted for this type of lighting that can keep intruders from having a clear advantage in the hours of darkness to try to make their way into a home.
The windows in the home are not only important for keeping cool air in during warm weather and heat in during cold weather it also is important that they lock correctly and are secure when they are locked to keep a burglar from entering through a window that does not lock securely.
Door locks on the newly purchased home should also be changed as a new owner there is no way of knowing if any keys have been lost or stolen landing in the hands of someone who would like nothing better than to enter the home once it is filled with the new families personal items.
A new home is the largest expense a family makes and one that they will enjoy and make memories in that will last a life time and these memories should all be good ones not one that is of a night when they returned home to find their house had been broken into and their material possessions missing and the knowledge that a stranger and gained entry into their home. This is a feeling that can cause fear, loss of sleep and be remembered as a frightening day and this does not need to be a memory when a home security system is installed.
There are some very important items that the potential homebuyer should have on their list and these are in the area of security for the home.
When choosing a home it is important to know the type of neighborhood the home is in, how many break-ins have occurred in the neighborhood. It is also important to check the landscape of the home and decide if any bushes, shrubs or trees can be cut away from any parts of the home that could hold an intruder hidden away in the darkness. Does the home have a security system installed, if it does not, if it is an older construction then it can be fitted for a wireless home security system and newer construction can be fitted for a wired home security system.
There are other things that also need to be taken into consideration when looking to purchase the perfect home, does it have motion lighting or does it need to be fitted for this type of lighting that can keep intruders from having a clear advantage in the hours of darkness to try to make their way into a home.
The windows in the home are not only important for keeping cool air in during warm weather and heat in during cold weather it also is important that they lock correctly and are secure when they are locked to keep a burglar from entering through a window that does not lock securely.
Door locks on the newly purchased home should also be changed as a new owner there is no way of knowing if any keys have been lost or stolen landing in the hands of someone who would like nothing better than to enter the home once it is filled with the new families personal items.
A new home is the largest expense a family makes and one that they will enjoy and make memories in that will last a life time and these memories should all be good ones not one that is of a night when they returned home to find their house had been broken into and their material possessions missing and the knowledge that a stranger and gained entry into their home. This is a feeling that can cause fear, loss of sleep and be remembered as a frightening day and this does not need to be a memory when a home security system is installed.
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