Wednesday, August 7, 2013

Requisites Before You Get A House

Buying a home is not that simple but when you are familiar with the processes it involved, you can buy a house anytime you want. There are three basic ingredients you need to know about when getting a house. You must learn about the requirements, processes and closing deals. Let us say you already have chosen the house you want. You can’t just buy it because you have the money. You need to follow a step by step guide.  First on the list is that you need to comply with all the following requirements.

The Requirements

Credit Score is the measure of your capacity to pay and tendency not to pay. It can be measured through your records and history of borrowing and paying. It can range from 300-850. If you want to buy a house, you should have a credit score of at least 720. If you got a high credit score, you will incur less interest. Another requirement is a permanent job. Getting a house will compel you to get a mortgage loan. There are a few banks that allow loans for people with temporary job however most banks require a permanent job to secure payment. The amount you can loan will depend on your salary. 

                      Credit Score

Your interest rate will depend on your annual income. At 4.5% you need to earn $43, 430 every year. Your salary will also dictate how long you can repay the loan. At 30 years loan term, you will need the following earnings from a variety of interest rates.

Annual Income
 Lastly, you will need to pay upfront or down payment of 3.5%-20%. It will depend on the price of the property and your financing options for the purchase. If you plan on getting a house in Washington DC, an honest DC Real Estate Agent should be able to clearly elaborate the deposit required by the seller.

Deposit is important to ensure that the buyer is serious and determined about getting a house. It will safeguard the deal.

Not really mentioned in other articles, but it is also important to maintain savings when you have plans of buying a house. This is because the price of the house isn’t just the cost of it. You will be processing legal documents and go back and forth to where the house is located. You don’t expect that the sellers will spend for you. You will spend a lot before you get the keys for the house.

More so, the process of getting a house is a bit long and time consuming. Some houses being dealt can stay for more than 3 months. Home inspection, repairs and other things should be done to ensure satisfaction on the part of the buyer.

Certainly, buying a house is a big investment that will require time, money and effort. When you found the house of your dreams, start preparing for it now. Limit your debts, save a lot and find a permanent job. Dream house will eventually be yours if you prepare for it.

Next blog will be about a step by step process and tricks when closing a deal when buying a house.


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