Buying a house for the first time can be a fear-inducing yet equally exciting affair. Whether you realize it or not, you’re on the brink of making a huge financial decision and any wrong move will cost you a huge amount of money and mental sanity. But, if you’ve saved enough money for your first home’s down payment then you’re off to a great start but if you want to ensure success make sure you consider the following 5 considerations!
Number 1: Your Current Financial Position
Want to purchase a house? Well, before you do you should assess your present financial capacity to do so. The thing is, besides being so damn expensive upfront, homeownership brings with it a new load of financial responsibilities. From saving for a down payment to heavy property taxes and maintenance costs, you have to ensure you’re financially equipped to bare the burden of buying a house. But here’s the bright side — you are in control of how much financial responsibility you take on and you do this by buying responsibly.
Regardless of how much your bank is willing to offer you, you should stick to your intended budget. And I can assure you one thing. The moment you decide to start hunting for the best mortgage deals, multiple lenders will approach you with well-packaged quotes. However, no matter how convincing their courting dance is, don’t settle for the first lender that offers you a quote. Instead, shop around and only settle for the one that fits your budget and expectations. This is because while banks are in the lending business to mint money, your mortgage is just another expensive financial commitment that will cost you big time.
Having said that, make sure you know all your options when it comes to purchasing a home. Typically, you can either buy a house by obtaining a mortgage or whipping out the full amount in cash like the billionaire you are. It so happens, the latter option is only viable for the chosen few and since buying a house with cash is impractical for most aspiring homeowners, seeking a mortgage tends to be the next best option. A mortgage is simply a loan obtained from a lender (usually a bank or mortgage company) to pay for a property.
Primarily, any lender will require you to pay a lump sum in cash during the early…