Ten years after the bursting of the mortgage bubble, there is a worrying situation across the United States: property prices have recovered, homeowners are in good spirits and people who rent are getting ready to buy. People who bought long ago and kept their homes are happy, their properties have gain value, and they pay meager interest rates.
However, a growing number of people have been forced to rent: Rising costs, stagnant wages, and rising prices make increasingly difficult for them to buy their own home. Potential consequences of this are discouraging for a country with alarming economic inequality: The equity in their homes represents most people’s wealth, and more people renting means fewer people have the financial security of owning property.
Nearly two-thirds of adults own their home. Moreover, many people rent on their own, not out of necessity. However, holding the house you live in has always been part of the “American Dream,” and it’s becoming more challenging to make it a reality.
Five Inner Secrets for Buying a Home
- Location, a deal-breaker
It is possibly the most obvious factor, but one that we do not always prioritize. It will surely be the beginning of our search and the most general indicator of the zones or neighborhoods in which we can focus. Living close to your office can save you the daily traffic of traveling, and allows you to spend more time with your family or devote more time to a hobby. It can also give you certain benefits such as lunch at home and a nap at noon.
If you can’t live near your job, perhaps the most convenient option would be to look for areas with easy access to public transportation. It is often more efficient to ride a bus than to take the car out, primarily if you work in the historic center or where there is no parking space. The extra time you save can be used for other activities.
Another factor of great interest is living close to restaurants, cafes, neighborhood shops, pharmacies, fruit shops or even a shopping center. Nothing is more convenient than being able to walk to buy fresh bread for breakfast or have coffee with your friends without having to use the car.
It is essential that you are well informed about the real estate agency that you look for. In some cases the price in these is high, but you must also appreciate that you can save money because they act as mediators negotiating the cost of the property with the owners.
Once you have in mind the house of your dreams, contact the agencies or individuals and make a plan to visit the number of homes you consider appropriate, always depending on the availability you have. We recommend that you do not see more than five properties a day, because fatigue can cause you to lose heart and not be objective.
To make the right decision, we recommend that you visit 15 to 20 properties a month, then limit them to 10, finally to 5 until at the end you decide for one. Remember, not every house is perfect, there will always be one or another feature that get out of hand, so it is recommended to choose wisely.
- The importance of a competent agent
You can ask a potential real estate agent about his or her experience, and verify that information with a state licensing authority. It is essential that you decide on someone who has between 3 and five years of experience working as a real estate agent. Keep in mind that you are looking for someone who is actively engaged and who can demonstrate knowledge of the area and properties of your rank, so that you can sell either your home quickly and at a reasonable price or so that you can buy the house you dream according to your initial budget.
All real estate agents are different, so we must ask ourselves if it works transparently? Alternatively, is it well recommended? Key questions that will guide us on the way to the dream home.
- Loans and grants
You don’t always have to count on 20% of the down payment when you buy a home. There are situations where individual loans may be available for the purchase of a new home, which is why some people are fortunate enough to get such loans or down payment grants.
Here is the importance of talking to your real estate agent to get this kind of help, either through expert lenders who can offer you the best offer for the down payment on your new home, but that’s not all, you have to be careful whom you will hire in this type of management, because some external sources such as websites may ask for personal information, and if you do not know what mess you are getting into, it is recommended to leave everything in the hands of your agent.
- Unexpected costs
Be careful in this regard, not only the initial cost and closing costs are the ones to take into account when you buy your first home, there may be hidden costs in addition to your monthly payment. These payments can be property taxes, HOA fees, utilities, all this without counting the maintenance that the house may need if required. The wisest recommendation is to make a budget sheet that includes as much information as possible about the current state of your home and the costs it entails.
When buying a new home we go through stressful times regarding the acquisition, and many people want to sign and be owners and lords of their home. To help you acquire without problems, it is recommended to make use of the most basic tools that will help the process, resources such as good credit history, no debts in any institution and a good account of proof of payments by your bank. These will ease your path more at the time of the purchase because in that way your real estate agent will know that you are a responsible and hardworking person who will not miss your monthly payments.