Buying a property is the greatest financial commitment for most people. It can be a real source of stress: work, and challenging to get financing. However, all of these elements can be mastered if they are approached in a methodical and thoughtful way. Here are some helpful tips on the websiteFirst time home buyer programs in MD.
Establish your criteria
Buying a home means projecting into the future. Each person has different needs depending on their personal situation and their desires: single without children, young couple, and large family, elderly … A dwelling has features that meet a certain type of audience and unique situation of the home buyer.
Thus a young active bachelor may prefer a small condo near an urbanized urban center to do the shopping and go out, while a large family may prefer as much as possible a sufficient number of rooms with a quiet outside space to allow the children to play.
Before starting your research, it is necessary to define the criteria that must present your future housing and with a classification according to their importance: space, proximity to shops or schools, garden, quiet, floor or even floor, etc.
The hierarchical classification is very important because it will make a choice between two goods when all your criteria will not be met. Be prepared to make concessions because it is very rare to find a property that meets all your requirements … and on budget.
Determine your budget
There are properties at all prices. You will see it in your searches. Do not go on a visit without first making a financing study with a financial institution. This will benefit you twice.
First you will select financing programs that will be in your means. This will prevent you from wasting time on unnecessary visits. In addition, after a few visits, you will have an idea of the market and you will readjust your search criteria according to the price factor.
Secondly a first simulation will give you an idea of your future budget. It is important to project and calculate your standard of living after purchase to avoid any disappointment. Even if your banker asserts that you can borrow up to a monthly payment of € 1,400, you may not want to go to the maximum to preserve your purchasing power and your leisure expenses. Note that the purchase of a property involves indirect costs that must be integrated: property tax, residential tax, charges, etc.
During your search you will select properties according to their configuration and location: neighborhood, area, garden, swimming pool, etc. The visit is a means of checking your criteria but also of controlling other important points: quality of construction, level of insulation, general maintenance of the dwelling (testifying to the rigor and seriousness of the former owner) Noise and neighborhood, opposite, etc.
All these elements that do not appear first on paper are very important. They make it possible to verify the material qualities of the property as well as your adaptation in a new environment.
A beautiful, well-built house, but on the edge of a busy and noisy road, can quickly become a headache … Similarly, a well-placed but poorly maintained house (cracks, problems of masonry or waterproofing) Repair and will present a high level of discomfort.
Prepare your financing plan
Buying a home requirespreparation. Whether it is for research, construction or financing, you have to do it in advance. Financing is the most important part because it determines purely and simply the feasibility of the project.
The first step involves the creation of a contribution. It will be the longest. The contribution is very important because it allows you to gain the confidence of your financial institution (it proves your capacity of management and seriousness) and secondly to give you a margin of maneuver to equip your property. Indeed if you spend your entire budget in the acquisition, you will not be able to equip your housing correctly.
It is therefore necessary to save money by thinking about the pure financing of the acquisition and its furnishings.
Next you want to look for the best credit offer. Do not hesitate to compete with financial institutions. Be demanding because the banks will be. Your accounts will be peeled. They will ask you for the complete transfer of your accounts, the subscription of various insurance products, etc.
Choose the length of your loan. Knowing that a longer term will reduce the monthly payments but will cost you much more in interest.
If you buy your property to resell it a few years later, it may be worth negotiating prepayment penalties.
Know that in terms of mortgage, everything and negotiable: rates, fees, insurance, and refund penalties. To get the best possible conditions, it is up to you to present a good record by ensuring a rigorous account management several months or years in advance.