If you’re looking to buy a home with someone else, remember that you can look at houses 3 times your combined annual incomes.
Most banks consider a 16-19% debt ratio to be a moderate amount. Some may allow up to a 42% ratio before you’re not allowed to be issued a loan. At that high a ratio however, you will be lent less money than you would be with less debt. If your debt is 6% or lower, the bank will allow you to borrow as much money as you are eligible for. You don’t have to pay off the remaining 6% for any increased benefits.
You may even be able to afford a house costing 4 times your annual income if you make a 20% down payment, especially if you have minimal debt to pay off.
A credit score of 700-759 is generally considered good credit, with those 760 and above considered excellent, and those below 700 fair or poor. Most banks won’t issue you a loan with a score below 660.
You also want to consider the innate aspects of living in certain places, such as congestion and high traffic in urban locations, or large distances between places in more rural ones, requiring a car. If you rely on public transit, a city may also be your only option.
Another crucial detail to keep in mind is if the home’s layout works for you and your family. You’ll need open kitchens, dining rooms, and living spaces if there will be lots of people using the space frequently. In contrast, if you’re living by yourself or with just another person, you may prefer having less space. Narrow your search so you’re only visiting homes that meet your criteria.
If you can, knock on someone’s door and say how you’re interested in moving to the area. Ask what their thoughts are on it, and any concerns they might have. It may seem daunting, but if the locals act unkind towards you in the first place, it might be an indication it’s not the best place to move. Information about any neighborhood in the United States, such their demographics, quality of their school systems, crime statistics, or weather patterns, can be found here: http://www. city-data. com.
Some free search engines you can use are https://www. trulia. com/, https://www. zillow. com/, or https://www. redfin. com/.
Bring a camera and pen and pad with you to take pictures and notes, so you’ll clearly remember how each house and its location looks.
The seller of the house pays commission to their and the buyer’s agent from what you pay for the house (usually 3% of the total cost of the house). When deciding if you want to use an agent, keep in mind the home’s cost will include the real estate agent’s payment. If you don’t use an agent, you may be able to negotiate a lower cost from the seller due to them not having to pay commission.
If a new home is built with energy-efficient features such as solar panels or automatic temperature regulation to avoid wasting heat and A/C, it might lower the cost of your utility bill each month, saving you money in the long-term.
