Taking the steps towards buying a home is a very daunting and often complicated thing to do. As well as being a huge financial investment, it can be the most serious. It can be difficult to take the plunge when considering buying your first home, so here are a few signs which will indicate that you’re ready.
Tips For Buying Your First Home
In your younger years, you may have enjoyed moving around for work or college, or just because you wanted to try a different neighborhood or community. But this won’t be as possible once you go from renting your home to buying it. If you feel like you are at the point in your life where you want to settle down and create your cozy home, then this could be the right time for you to make that investment.
You gave stable finances:
Unless you are lucky enough to have the cash ready to buy a property up front then you will need to apply for a mortgage. This process will only be successful if you have your debt under control. If you are stuck in your overdraft or have maxed out any credit cards you may have, then it would be advisable to hold off buying your first home for now. Once you have sorted out any debt issues you may have, this will improve your credit score, which will encourage banks and lenders to offer you a mortgage.
You can manage to pay your mortgage payments and utilities:
The financial demands that are put on you once you own your home are often what deter people from taking the leap into home ownership. There are lots of extra charges that you must cover when owning your own house, so it is essential that you work out how it would cost you every month and whether your existing finances can afford it. It will require a lot of planning, but every year, many people buy their first home, so it can be done!
You can handle maintenance costs and the little extras:
When you are in rental accommodation, any faults or maintenance issues that arise are dealt with by your landlord. But when you own your home, it is entirely down to you to cover the unexpected costs. It may be an idea to have an emergency fund in place before you take the final steps to buy your own home, just so that you are prepared for any additional fees you encounter. If you feel that security is a concern of yours, then you might find it reassuring to purchase a wind chime kit, as the wireless options are great and it is a great way to make you aware of any visitors. Every home needs household items such as furniture and little extras that make the place feel like yours.
Buying your first home and taking that first leap onto the property ladder can be a huge step in your life, but it can provide you with a great sense of stability for the future. Ultimately, the choice to buy your first home is totally down to you, and even if you are prepared with all of the above steps, you still might not feel like you are fully ready. Just remember to take your time and don’t feel rushed into making any decisions. You can take advice from those around you and ask other people questions, but remember, that this is your decision and totally up to you. So, ensure that you are fully prepared for the journey ahead and any complications that may arise.
Home Buyers: 4 Things to Know As You Wait for Closing Day
Are you a home buyer? Have you reached the point where the home seller has already accepted your offer?
Once you reach this stage, you will likely think that all that is left to do is to sign the contract. Unfortunately, that is not how simple things are in real life. As you wait for the closing day to arrive, there are important things you need to remember and consider to ensure that there are no major obstacles that could delay your acquisition of the property.
Let’s take a look at four important things you should never miss out on as you wait for the arrival of the closing day.
An expiring mortgage rate:
First, there is the possibility that your current mortgage rate could expire before the actual closing day. You need to realize that mortgage interest rates may change on a daily basis. The rate that the bank quoted you will never remain the same all the time. What the bank can do, however, is to lock-in your interest for a specific number of days.
Generally, banks can do so for 45 or 60 days. The moment the days run out, there is a possibility that you may have to pay a higher interest rate for your mortgage. Some issues that could lead to the expiration of your mortgage rate include illegal renovations and open permits on the property you are looking to buy. Your Napa Valley real estate agent should be able to assist you during the process.
When the mortgage process is not really complete:
Another situation you need to be aware of involves a mortgage process that is not yet over. Completing the application form is not the finish line. Most lenders of today have become stricter compared to a decade ago. They will look very closely into your income. They will also verify your assets as well as your credit history up.
For your part, the key is to avoid any major changes in relation to your finances. Do not buy any big-ticket items like securing a car loan or applying for a new credit card. You should also avoid moving to a new employer.
All systems must be a “go”:
Generally, most real estate contracts come with a clause allowing a walk-through of the property. This will be good up until 24 hours before the actual closing. As a home buyer, you need to capitalize on this.
This walk-through allows you to ensure that they key systems inside the property are in good working condition. You can use this opportunity to examine the house if there are necessary repairs that the seller did not undertake. If you see that the house’s condition is very unfavorable, you can postpone the closing until the issues have been addressed.
Doing your homework:
Lastly, you may need to do a little homework once you complete the closing of the property. You need to double-check if the seller was able to disclose any outstanding permits. It is your duty to ensure that the seller has released all liens on the title report. You need to cross-check if all the issues with the local building department, as well as the health department have all been addressed. If you are in the market for Napa Valley real estate contact a trusted real estate agent today.