Getting started on the property ladder can be difficult, the same as moving to a larger home when your family outgrows the one you are in. You may have seen the perfect house or apartment, but are you asking yourself ‘can you afford to buy a home’?
How Much Can You Spend?
The first thing that needs calculating is how much you can spend as viewing potential homes before you know your price range can lead to disappointment. There are two things that have to be considered. Firstly, what size deposit do you have, and secondly, what is your income, as a mortgage will be based on the amount you earn.
Generally, most lenders expect you to put down a deposit of 20% of the value of the property, but this is not always the case. In some circumstances 100% mortgages are available. As the mortgage market in the US is very competitive, it is worth looking around for the best deal, and getting pre-approved can be useful. Then if you find the ideal property in your price range, you can immediately put in an offer and know your mortgage will not be a stumbling block.
Are You Finding Interest Rates Confusing?
Most loans in the US are at a fixed rate, which can be good or bad depending on how interest rates nationally behave. If they drop, you could be paying more than you need to, but if they increase you are onto a winner. Variable rate mortgages mean that your payments can increase or decrease, and the difference can be quite considerable. Then there are different rates charged for the various sorts of mortgages and the whole thing of which deal is best for you can become a bit of a minefield.
If you need help navigating this huge array of mortgage types and interest rates, the Mortgage Playbook could be the answer. A service such as this will make the whole process so much easier, so you can concentrate on preparing the material things for your new home.
Moving in Day
So now you have your mortgage, the deal has been signed and moving in day has arrived. This can happen very quickly in the US, unlike in Europe where it can take several months. If you are moving from another property, you will already have most of what you need, and it is just a case of arranging for a removal company to uplift your worldly goods from one property to the next.
If you are a first-time buyer though, you may be in for a bit of a shock as to how many things you need. Of course, there are the obvious things likes beds, chairs, cooking utensils etc. It is the smaller things that tend to be forgotten, like a can opener or a cheese grater. None of this will matter because you will just be so happy to be moving into your new home, however, it is a cost you need to factor in.
Being able to afford the new home of your choice is an amazing feeling and having the right help to achieve that aim makes it more possible.
