Tips to Buy Your Second or Investment Home
Buying a home for the second time or as an investment is a big decision. This article at https://www.greihousebuyers.com/ will provide you with tips to help ensure your purchase is both comfortable and profitable.
The Home Buying Process
Buyers often find themselves without a clear understanding of everything that goes into purchasing a new home, but it doesn’t have to be complicated. The real estate agent who represents you will visit homes that match what you’re looking for, take measurements and photograph them so they can give you an accurate representation of the home on paper, and show you comparable listings in the neighborhood or area if necessary. The agent then coordinates offers between all interested buyers and presents them to sellers. Once the seller makes a decision, the agent arranges for inspections and draws up the sales contract.
The Offer
The sales contract is the foundation of a transaction. It outlines the terms of sale, including the price to be paid, property condition and the buyer’s responsibilities in case of termite damage. The seller will prepare an offer which outlines the specific terms of sale and any contingencies that preclude acceptance of that offer. In many cases, there are variations on offers available for buyers to choose from; that’s why it is important for you to be well-informed about all aspects of a home purchase before making your decision.
Determine the value of the property
Calculating a property’s value can be a tough task. Most buyers choose to hire an appraiser to assess their new home and give them a written report. This report tells them how much other similar homes in the same neighborhood have sold for recently, as well as how much they are likely worth at current market rates. Home appraisers typically charge $100 – $200 per hour, so it helps to do your research on which appraiser is right for you before making that call.
Figure out your mortgage payment
Before you decide you want to buy, it is good idea to know how much a mortgage payment will cost. According to the National Association of Realtors, the average monthly principal and interest payment on home loans for the first-time buyers between April 2011 and March 2012 was $1,723. The average monthly payment on a FHA loan (including taxes and insurance) in that same period was $1,629. If your income is higher or lower than that average, there are things you can do to lower your monthly cost of borrowing money or increase your monthly income if necessary.
Consider your own situation before buying a home
Before you undertake the purchase of a new home, it is important to make sure that you will actually benefit from owning one, and not be able to afford one because of higher costs. The National Association of Realtors says that first-time buyers could expect to spend 46 percent of their monthly income on mortgage payments (excluding taxes and insurance). This can easily add up over time. Before committing to a new purchase, consider not only the size of the home, but also if you will actually benefit from it as well. Don’t forget that factors such as interest rates and home repairs could change drastically over time.