In the book “Rich Dad & Poor Dad” by Robert Kiosaky, he adviced people not to buy house; just do for investment . However, nowdays and for some people they love to have their own house where their children can live well with stable life & grow up. They also have stable residence & continue with the work. So how to save money & buy a new house in quick time. Don’t tell us you take more than 5 to 10 years to buy it successful.
A dream about new house for young couple is not faraway if you have a good plan for yourself. To make this dream come true every couple should be cautious and take each step slowly and steadily when preparing and searching for. With cautious planning, saving and understanding your limitation you can surely buy the house you always dreamed of. To help couples buying a home, this writer shared some steps that the young couples should follow.
Before you get a home, you need to set what your priorities are, because you don’t want to be in a home with some construction problem or in a noisy neighborhood. If you do that, this decision can make your family suffer for years.
The size and design of the home are a very common priority any couple should discuss. You need to be clear about where you should get a home. If your job or business is city based, both discuss staying there if you can afford it. Discuss if you need a big house or if you need a small apartment to start your life which depends upon the financial condition of the couple. If you want to live in a city, you have to opt for a smaller apartment. If you want a home in a quiet place, choosing a suburb house is a great idea, as the atmosphere is quieter there and also you can afford a bigger house. Discuss and keep a list of the attributes you want in your home.
After you get sure about the preference, it is the time to research on which home fills your entire requirement. This part is easy because of the presence of internet in our lives. You can research through numerous real estate sites, through which you can collect information about the properties. You can check the pictures and present information of that property. You can know about the space, internal layout and potential price of the property.
After doing the research online, don’t forget to visit the site in person, as you can check the neighborhood and locality. It is necessary for the buyer to check the construction history as well as the maintenance of the building. Always choose the home that fits your lifestyle.
• Get a Real Estate Agent:
Even after researching all these, get a professional real estate agent to help with the search. A real estate agent knows everything about the properties. They will provide you with in-depth knowledge about any house you want to buy which would help you to make your decision. A real estate agent has knowledge about the area which the customers don’t know. Because of their knowledge about properties they can negotiate the price of the property and lower the price over thousands of dollars. They would steer you towards your dream home. The real estate agents work as a wall between the home sellers and buyers. The real estate agents also take up the legal procedures including tax liens and other things upon themselves so you don’t have to worry about it. The key to finding the perfect real estate agent is that, check over the experience of the real estate agents. Only a good, experienced real estate agent can lead you to your dream home.
• Get your finance in order:
Keep track of your credit report and credit card score and look out for any inaccuracies which will, in turn, determine your ability to borrow money. The lenders look for four factors called four “C”s that is, credit history (timely bill payment), capacity (income vs. debt), capital, and collateral (the condition and value of the home). Take care of these factors and so that you can get the best loan package as possible.
Know about the closing cost and down payment. Down payment means how much cash you are going to pay the purchase price. And the closing cost means cost above and over the purchase price you incur while you would be financing and transferring ownership of the house. Always try to get a loan which allows you to have the closing cost and the down payment.
• Get pre-approved for financing:
By getting pre-approval you would know what amount of loan you can afford and also you would know about finding the rates and terms. A pre-approval is a guarantee on which the lender will lend you a fixed amount of money. Sometimes you have to pay a fee to get a pre-approval which helps you to buy a home with confidence. One thing I would like to remind you is that the preapproval is different from the prequalification.
• Choose the right savings account:
While choosing a bank account, always choose a FDIC member account with high rates of interest. Online banks often offer higher yield than the other banks. Just have an account where you would keep your funds liquid and easy to access. You can even set up a traditional savings account even if you get low interest on this.
• Consider splitting a paycheck:
Any financial planner would suggest any couple divide their expenses into three categories- survival, livable and comfortable. The survival expense covers all the basic necessities like food, water, clothing, and insurance. Try to live in one paycheck but try to split it. The other paycheck should cover the unexpected costs.
• Save $10k for unexpected cost:
Buying a home comes with spending a lot on that home in the first year without even counting the down payment and the sale price. The first time homebuyers often forget that they have to spend $10000 over transactions and move in costs. The unexpected cost includes utilities, moving cost, furniture costs, taxes, maintenance and insurance.
Try to maintain all these stuff to get your dream of having a house come true and live happily ever after.