Things you should know before buying a house

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Things you should know before buying a house

Things you should know before buying a house

One of the goals that many people want to accomplish is to have their own home, so much so, that there are those who think that renting a house or apartment is throwing money in the trash. However, buying a house is not an easy decision and the process can be very stressful and complicated. Because of this, here I explain what you should know before buying a house so that the process is not so difficult.

1. You must have a good credit

For a bank to provide you with a mortgage loan you must have a good credit history and a high score. Since in this way, your chances of being accepted will increase and you will be able to obtain a lower interest rate.

2. You must know and choose how you are going to finance the house

In the market there are different types of mortgage loans to which you can apply to buy the house. After you set your budget and define how much of your savings money you will use to buy the house, you should compare different mortgage loans. In this way, you can choose the one that suits you best. In the United States, banks generally do not finance 100% of the home, so you may have to pay closing costs, down payment, etc.

3. Find out if you can get help from the Government

The Federal Housing Administration (FHA) offers a mortgage financing program, with which you could obtain FHA mortgage loans if you cannot qualify for a traditional mortgage, do not have good credit or cannot pay more than 3.5 percent of the initial fee.

Similarly, the Department of Housing and Urban Development (HUD) offers a Housing Choice Voucher Program (also known as Section 8) to help low-income people buy a home. You can contact the HUD offices to apply for the program.

4. Know how much money in taxes you will have to pay

Depending on the state where the house is located you will have to pay a tax when you buy it. For example, the New York State transfer tax applies to any transfer of ownership of more than $ 500 at a flat rate of $ 2 for every $ 500, or 0.4 percent of the total cost of the home. Similarly, New York City imposes a 1% tax on properties valued at $ 25,000 or more.

5. You should know if the house requires other monthly expenses

Before making an offer, you should know if the house you want to buy is part of a resident association or requires a maintenance fee. Since, in addition to paying the mortgage, you would have to pay once a month a fee to the association for the maintenance of the community.

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