If among your plans for this New Year, is finding a house, then this note is designed for you. We understand that you have decided to end the rental payments, even that it could be the first step to independence and the beginning of a new family life; We also know that the financial decision to buy a property is not something that is taken lightly, but this is a decision that we all must make some day austin home buyers.
This is why we want to give you the best financial planning tips, so that this year you fulfill your goal of buying a property.
Think of the ideal price
According to the financial education program , when planning the price of a house you should consider the annual family salary (it means your salary multiplied by 12, your partner’s salary and any economically active member who will live in the property), and multiply it by 4 times. This value will be the ideal maximum value to look for your future home. A practical example is this: your annual salary is $ 18,000 and your partner’s salary is $ 14,000, we collect both and multiply them by 4 and the maximum value of the property that they should buy is $ 128,000 (this value includes the legal costs and purchase / sale taxes).
Always, when planning the purchase of a house, do not forget to consider that there are extra expenses that you must enter into your budget. These expenses also influence what type of home you can buy. Remember that there are legal / administrative expenses (legal papers, management to legalize your purchase), financial / banking expenses (taxes, mortgage rates) and tax expenditures (goodwill and municipal taxes).
The entrance or advance payment
Always consider that you have to deliver a certain advance value to acquire a property. This value must be in cash. In general, this amount is calculated on the price of the property and varies between 20% and 30%. You must consider that no financial institution will give you 100% of the value of the loan, so you will have to save. Try to give as much as possible of the entry, so you will have less pressure to pay the monthly installments of the mortgage.
The financial “cushion”
Ideally, within your savings, consider having at least 3 installments of the mortgage before buying your property, so that when you start paying, you will adapt your economy: if the quota was greater than projected, you can distribute it gradually; if not, it would be like a saving that even in an economic emergency, this “mattress” will give you a relief.
Once you made the decision to acquire real estate, it is important to plan taking into account all the previous recommendations.
The first step is not to contract other debts, avoid having large charges on credit cards or minor investments. Make sure you are not in any kind of blacklist or default list, since this makes it impossible to acquire any type of loan.
After you have already calculated the approximate value of the good you can acquire, you can start by consulting the Vive1.com portal, to have a clearer idea of what type of property you could buy, in which sector sector and in what state (new or used).
Put a date, decide when you want to do it, is 2018 the best time ?, and start the journey, determining how much you have to save monthly to reach your goal and open a savings account just for it. You will have those frozen funds and you can increase your capacity for savings, without temptation.
Finally persevere. If you have set yourself the goal of acquiring a home and with it the well-being and family tranquility, do not be dismayed by short-term goals such as not acquiring more debts, saving or obtaining secondary income.
We want to conclude by encouraging you to take the first step to acquire your new home, which will be the beginning of many satisfactions in your life. These tips that we give you will give you a clearer vision on what aspects to take into account. We also hope that they encourage you and make you realize that it is not as difficult as you thought, that doing an economic analysis is an achievable dream and that you only need to start. If you are already on the road, we hope that all these tips encourage you to make wise and concrete decisions to reach the best purchase of your life.