Buying a new house should be an investment that you don't regret. Finding the right home is one of the most important financial decisions one can make. The process requires certain steps to ensure a successful property acquisition.
First, make sure that when you start looking for your new home, a pre-approval is obtained from your local lender. To get a pre-approval, you will need to have a copy of your FICO credit score. This score takes into account your credit from multiple credit bureaus. The FICO score will reflect issues in the past that have impacted your credit, such as filing for bankruptcy and missing or late payments. You can see what outstanding payment you may have, and figure out what you need to do to raise your score. A higher FICO score will improve the terms of your home loan, which makes it an important step before jumping into the buying process.
Make sure when looking for a home you are realistic about your monthly budget. Will you be able to afford the payments? Because of how damaging missed and late payments can be to your financial standing, it is best to choose a home that will not be a reach for you to make the payments on, even if it is your "dream home."
Purchasing a home is a great investment, so it is also important to consider how marketable the home will be if sold in the future. Consider the neighborhood's safety, noise level, quality of the school district, accessibility from local roads and potential for flooding or other natural disasters.
Make sure that the house you are interested in is priced similarly to other houses in its neighborhood. Ideally, your new house should be priced on par with others in the area. Typically, a good range is no more than 5 percent above or below the property values of neighboring homes.
There are many fees that come with buying a home, including the cost of getting your new home inspected before finalizing the deal. This costs around $300 to $500 and will provide a checklist of damages and repairs that impact the home's value. It also points out places that may need repair by the current owner before you are willing to close.
Like any other financial decision, purchasing a home is a process that requires research and planning. North Country Savings Bank can help you find the right home for your financial situation, and budget out the costs of the home buying process.