4 things to take into consideration when deciding to buy
A house is made of bricks and beams. A home is made of hopes and dreams.
-Ralph Waldo Emerson
Buying a house can be a complicated and frustrating process, yet a rewarding accomplishment.
It’s a big step for some people and I can simplify the process for you.
Here are a few things to consider besides finances before signing on the dotted line.
Are you ready to buy?
Buying a house is one of the largest financial decisions of your life. It should not to be taken lightly. Unlike a car, you can’t return a house after 3 days. Make sure you really want to be a homeowner and not just in love with the title.
There are serious responsibilities as a homeowner. When something breaks, you can’t call the landlord to fix it. You have to fix it yourself or hire someone to repair it for you. The house also needs regularly scheduled maintained like cutting the grass or painting the inside.
What type of mortgage will you get?
There are 4 types of mortgages available. Conventional, FHA, USDA, and VA. NACA is the 5th, but it’s not very common and is a long process. The mortgage you end up getting, mainly depends on where you live, credit score, income, military status, and debt.
One mortgage is not superior to any of the others. With the guidance of your lender, you can decide which one is the best choice for you and your situation. Some of these mortgages will allow you to buy for 0 down or as little as 3%.
How long will you live there?
Typically, buying is better if you’re going to be living there for a long period of time. Houston is not known for it’s rapid appreciation. Selling shortly after buying could cause you to lose money once you account for all of the fees a seller has to pay.
If you plan on moving less than 3 years after you buy, look into pre-existing houses instead of new construction. New construction houses in Houston have less built in equity and if they are still building in your subdivision, buyers willingly pay a few thousand more to get a brand new house.
Do you have money for closing costs?
When buying, closing costs can range 2-4% of the price of the home. The amount you pay will depend on the property taxes, type of mortgage, and property insurance. New construction houses will have higher property taxes, but lower property insurance.
After you’re pre-approved to buy a home in Houston, your lender will give you an estimation of closing costs. There are many different ways to get closing costs assistance. A few are lender credits, realtor rebates, down payment assistance programs and seller concessions.