If you are in the market for a home, or considering a purchase, there are some things you will need to know and consider before the actual purchase. Many people jump the gun when buying a home for many reasons and make costly mistakes. It is important to take the time and effort into finding the right home for you; after all, you will be locked in for many years to come.
Do You Even Know if You Should Buy?
If you are the type of person to not stay put, buying a home can, in fact, end up costing you money. The transaction amount for a sale of a home is definitely pricey. If you are not looking to commit at least a few years to the home, it will more than likely not be worth buying. Remember, selling a home costs too.
Do Not Get a Home You Cannot Afford
The main reason why people find themselves in trouble down the road is the fact that they bought a home that was too expensive for their lifestyle. This is possibly the one mistake that really can hurt the most. Before you go looking at homes, make sure you evaluate where you are financially. After you have run some numbers, look at it from the worst possible standpoint. It is often advised that a married couple only purchase a home that they can afford on one income alone. This is especially good advice within this economy; People are losing their jobs left and right. To get a fairly accurate calculation of any financial aspect, use calculators online that are specifically designed for the area of information you need. For example, a mortgage calculator can help estimate monthly payments. More often times than not, these are free to use.
Get Your Credit Score Dialed In
In order to purchase a home, you will need good credit. About 3 months before you start house hunting, pull your credit report from all three agencies: Experian, Equifax and TransUnion. These are the top three credit reporting agencies the lender will utilize. Take the time to check for any mistakes and if you find some, correct them immediately. Fixing a credit score does not happen overnight. Typically, it will take roughly 30 days for a mistake to be corrected. Although this can sometimes be tedious and rather annoying, it is worth it when you see the difference in the interest rate you receive and how much you save in the long run.
Weigh the Options of All Mortgage Types
Some lenders offer different financing. There are many varying degrees of down payments required, as little as 3.5% down. Look at these options carefully and find the best financing that meets your particular needs.
Buy In a Good Area
When it comes to resale values, a good area consisting of schools, local entertainment and more can prove to be very profitable. Being near a school area is a very high priority for many people with children.
Learn more about the akhomeshow.com Anchorage Real Estate market or search all the akhomeshow.com/anchorage_real_estate.php Anchorage MLS Listings on Ryan Tollefsen's Alaska Real Estate web site.
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