Buying a house is one of the most significant decisions you’ll have to make. According to a report by the National Association of Realtors, 84% of Americans see homeownership as a considerable investment.
With the increasing value of homes, you want to give more consideration to looking for a property. It would be best to reorganize your priorities to achieve your goal of homeownership. Consider these seven factors to find the house of your dreams:
How Much House Can You Afford
Mortgage lenders want you to have an excellent debt-to-income ratio. If you have more debt than income, you have a low chance of qualifying for a home loan.
Qualifying for a mortgage doesn’t mean you’ll be able to afford to live in the property you want. Check if your current income helps you meet home expenses like maintenance, upkeep, and repairs. If it doesn’t, you need to either save up more or find a house that matches your current income and lifestyle.
Credit Score
Make sure your credit is in shape before applying for a mortgage loan. Get your credit report from credit reporting agencies and go over issues you may have. Contact the agency for any inaccuracy and have them correct it.
Most lenders require a credit score of at least 580. Having a higher score improves your chances of qualifying for a mortgage and interest rate you want.
You can improve your credit score by:
- Paying your bills on time
- Paying off debt and keeping your balances low on credit cards and revolving credit
- Keeping all lines of credit open, even unused ones
- Not applying too much for new credit
Down Payment
Save toward a down payment before meeting a loan officer and realtor. Having a bigger down payment means you can avoid private mortgage insurance that’s part of the closing fees when you buy a home.
Other benefits for having a large down payment are:
- Smaller monthly mortgage payments
- The ability to get the most out of low-interest rates
- A better chance of securing a property you want
Location
Research the neighborhood before you start looking for houses. Look into factors like:
- The crime rate of the neighborhood
- The proximity of the area to your job
- Quality schools in the area
- Access to health and entertainment facilities
When you visit the site, talk to the people who live in the neighborhood. They’ll give you insights that realtors can’t always provide you.
Amenities
The amenities you want in your home depends on your family’s needs. You might want a place optimized for impaired mobility if you’re living with elderly parents. If your children live on their own, you might not need as many rooms.
Other features you need to consider include:
- Appliances
- Bedrooms
- Bathrooms
- Kitchen
- Ventilation and heating
- Garage
- Flooring
- Curb appeal
When buying a home, you want to make sure that you choose the best possible property for your current and future needs. You also want to make sure that you’re able to afford the property you want. By prioritizing these factors, you can make more confident and informed decisions about buying the home you want.
