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How to Buy a Home


Apparently, gathering money for buying a house is not the hardest part of the process. Buying a house is tricky: with all those offers, plans, loans and programs, one feels really confused. Besides, there are lots of scams, overpriced offers, and dishonest real estate agents that make the situation worse. Let us be your flashlight in this dark forest and share several tips for buying a good house at fair price.



Estimate your budget

The first thing you want to think about is your budget. Yes, there are a lot of houses for sale, but at this very first step you will significantly narrow down your area of search. Ask yourself: "What can I afford?" To answer this question, you need to calculate your total gross income. The sum that you want to spend on buying home is 1/3 of your gross income. You don't want to go over this sum of money because there's no fun in buying a house and eating only bread and water. Remember that alongside with monthly mortgage payments you need to care about insurance, maintenance, home improvement, taxes, and many other things that also cost money. So, sit down, do your calculations, and start searching for an appropriate variant.


Check your credit history

Before you buy a house, take a look at your credit history. Pay all your debts in order to have a good credit history and be taken seriously by the lenders. If you seem reliable and solvent, the lenders would offer you good interest rates and fair terms.


Find a house

When you know the price that you can pay for a house, you can start searching for real estate for sale in your area. Needless to say, prices may vary from state to state, so you can go online and compare the prices in your area to get the idea of the price range. Make a list of affordable variants and sort them out depending on your priorities. Most people know where they want to buy a house, but in case you haven't made up your mind on the location yet, check the infrastructure in the neighborhood. You want to have a place to go grocery shopping, do your laundry or dry cleaning, have good parking conditions if that's important for you, etc. All these places make your home an easy place to live, so make sure they are really close to your house.


Get some extra money

If you can put down more than 20% of the cost, think twice before you make this decision. The point is many first time buyers don't realize how many initial and unexpected costs they may have, so you really want to have some extra money that you can spend on your primary needs.


Don't opt for mortgages for bad credit

You will pay thousands of dollars for the first year in only interest, and continue paying tons of money for years to come. Try to look for alternative sources of loans or fix your credit history before you buy a house.

Don't deal with fishy real estate agents or lenders

That's an obvious point, but thousands of people keep making the same mistake over and over again by trusting their money and their future to unreliable people. Invest a little more in a trustworthy agent and save yourself thousands of dollars in the future.



Although the process of buying a house seems fairly easy for some people, this is a really great responsibility and a lot of questionable points. Hopefully, our tips will help you to be a bit wiser when you buy a house.

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