How does a recent graduate buy a house?
Buy house remains one of the biggest dreams and goals for almost everyone. And so, it’s not too difficult to understand when many people talk about the feeling after owning their own home as something extremely sacred and unforgettable in life. This is especially true for young people – when savings are not yet available.
To get the unforgettable feeling of owning their own home, young people may have to go through many difficulties.
Although buying a home is considered a giant leap in your journey to adulthood, without proper planning and a clear understanding of the responsibilities and costs of buying a home, this decision can be devastating for many young people. feel sorry.
Don’t worry too much, as long as you have the right plan and set of goals, this can be easily avoided. Here are some helpful tips to help you make your dreams come true:
1. Determine ability to pay
As a recent graduate, getting an extra mortgage can come with some risks. And of course, accompanying debt is always an invisible burden. Therefore, it is important that you understand all you want, accurately estimate what you have yourself.
To start, you should consider factors such as: income and expenses you have / will have after buying a home, including: daily living expenses, electricity and water bills, loans. other (if any), provision…
Once you have a complete picture of your budget situation, there are a few things to keep in mind before looking for a suitable home: Housing-related expenses should preferably be 1/3 of your gross monthly income (including mortgage payments, utility bills, etc.). Not only that, your monthly expenses also need to be carefully calculated when embarking on this process.
If you find you’re ready (financially and mentally) to buy a home, the next step you need to take is SAVE for a down payment.
2. Save on an Upfront
Your first step after budgeting and determining affordability is to start saving for the down payment. Although with all the incentives today can allow you to buy a home with a 20% lower down payment, it is still an option that should not happen.
To do this, practice breaking down your monthly income into: expenses, loan payments (if any), and savings.
But to avoid being consumed To add to this savings, try keeping your personal finances safe with a long-term online savings account and keep the card in a private, inconspicuous location.
3. Manage your credit score
Credit score plays an important role in your home buying process, as it can determine if you qualify for a home loan, as well as the interest rates you may be entitled to.
To find out what your credit score is, you should seek the help of a banker. Typically, a safe credit score is said to range from 300-850. At the same time, a score of 700 or more is usually considered very good, whereby risk is very low, loan eligibility, low interest rate and incentives.
Conducting a credit check will not negatively affect you, on the contrary, it will help you understand what you need to do next. Specifically, once you have the correct information, you can take the first steps to meet a mortgage lender and get pre-approved for your home loan. It also helps that when you meet a real estate agent, they will help you find a home that fits your budget.
If your credit score is less than ideal, change your spending habits and patterns. Plus, you can also improve by reducing your credit card usage, paying off debt, and making monthly payments on time.
4. Search and meet real estate agents or brokers
Once you’ve sorted your budget and finances, saved for your down payment, and determined your credit score, the most important thing before owning a home has come.
Now, seek the help of agents or real estate agents to find yourself a home that matches your criteria. Remember, before you start, you need to check your finances again, as well as your desired length of time in this house. Because, the first apartment is not necessarily where you will stay forever.
So keep in mind that affordability and finding what you want both play a valuable role in this process.
Buying a home for the first time can be a daunting process, especially for recent graduates. Therefore, it is important to fully understand the financial process and strategy. Doing so will help you make the best decision about the home you can afford and give you an accurate answer as to whether buying a home is your ideal choice right now.
at Blogtuan.info – Source: Afamily.vn – Read the original article here
