3 Things to Know Before You Buy a Home
Posted by Chris Penny on
So you have decided to buy a home, and you have identified one that you love and you want to make an offer. You need to prepare yourself for the task ahead. The way you prepare yourself will make the process either a success or a failure. Here are three things to know before you buy a home and jump into the fray.
Determine What You Can Afford
You need to understand the home you can afford. The first thing to do is to determine your debt-to-income (DTI) ratio, which is the ratio of your expenses to what you earn at the end of every month. The aim is to help you understand how much you can pay in terms of monthly mortgage payments and remain with enough cash to survive on. Most lenders require you to have a DTI of less than 50%. Lenders understand how…
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It's likely your home will be the most expensive thing you'll have to buy, but that doesn't mean there aren't ways to ease the burden for your wallet. By taking a few extra steps of preparation, you'll have the tools needed to save money on your next home purchase.
One of the most common goals for most people is purchasing a house, whether it's your first family home or it's an investment. Although it makes for a wise investment, there is plenty of planning involved before finding the right house. From saving for the down payment to maintaining a strong credit score, there are a few signs that will show you that you're ready to buy a house and can manage the overall cost.
If you are searching for a new home in the Sudbury, Ontario area, you will certainly have your work cut out for you. There is so much a home buyer has to consider, from the location and what is around the neighbourhood, the price of the property, the overall condition of the new home and even smaller details such as the number of bedrooms and bathrooms you want. Of course, finding the right real estate firm is of utmost importance as well. Because everything is done while on the go these days, there are a few real estate apps that should prove extremely helpful in your quest to find the perfect new home.
When you purchase a new home, you will typically need to purchase a homeowner's insurance policy. Mortgage lenders require you to purchase home insurance as a requirement with your loan, and you'll need to maintain minimum coverage for the life of your loan. Even if you own your home free and clear, you'll want to maintain a home insurance policy. This is coverage that can be used to repair or replace your home in the event it is damaged or completely destroyed. Before you make your purchase, you should do your homework to ensure that a) you get the best deal on your coverage and b) you buy a policy that is best suited for your needs.
Your first home purchase can be a smooth and informed process and doesn't have to be filled with complications and frustrations. The key to having the entire process go smoothly and efficiently is information. You need to keep yourself informed of all the valuable information available. We've got our top 5 tips to help you buy your first home, the start of the information you should have.