Everyone has a dream home, and we hustle every day to realize this dream. We work hard, save every penny we can, look at the real estate to determine the best time to buy a house that we can call home. However, buying a house or any property in 2021 needs to be a well-thought-out decision. It will help ensure that you do not regret the decision between buying or renting a house in 2021 and choosing the former.
If you are sure about buying a home this year, congratulations on the new journey. On this account, we are sharing a few things that you need to tick before you purchase a home in 2021. It will ensure that you make the right decision for yourself and your family.
- Do check your home-loan situation
The first thing to do before you start meeting realtors is to assess whether you qualify for a home loan or not. Find out your credit score, and then talk to a few lenders (banks and private loan companies) and determine at what interest rate they will be able to give you a loan.
Every lender will look at your score, debt, and financial status before deciding to give you a loan.
And knowing this before you start making visits to a realtor is extremely important.
- Do you have enough savings for a down payment?
The next thing to check is the down-payment on home property in your local market. Whichever areas you have finalized for living purposes will have a set down-payment rate. Find that out and determine if you have that amount with you or not.
The millennial generation struggles with saving money. The reasons for this are manifold- student debts, credit card debts, luxurious lifestyle, and current economic conditions. Therefore, if you plan to buy a home, start saving money for down-payment.
- Do be ready for high prices
To think that the pandemic would have cut down property prices is a fool’s dream. Buying a house in 2021 is not cheap. Expect sky-high prices and prepare yourself for the same. We have completed six months of 2021 already, so if you are sure about buying a house this year only, you need to assess your finances. Get them in order and create a plan to help you realize your dream of owning a house.
- Check your debt status
Before buying a house, you need to check your debt and pay it off. Having personal debt will make it challenging to get a home loan or decent interest rate. If you have more than one debt, the best thing to do is start by paying off one debt at a time, the largest one.
Or you can combine the debt and start paying it off with a consistent amount every month.
- Do check the locality
The price of the house is not the only determinantal thing when looking for a home. You need to check other things as well. For instance, the locality is one essential thing to keep in mind. Do not buy a house that is not close to basic amenities like a grocery store, hospital, or parks, and restaurants.
Also, keep in mind the distance of the house from your office as eventually, you will have to go to your workplace. If that is too far away from the locality of your house, it will do you no good to buy that place. For families, school, gardens, and society are also few factors to consider.
- Think about the future when buying the house
It is essential that when you invest in a house, you think about the future. It may be just you right now, but eventually, you will have a family. A home with a study room, or open area, or guest room is essential.
Find a house that provides you with basic things like this. Otherwise, you will have to start looking for a new place when your family grows.
Buying any piece of property anytime is a daunting time. With the current scenario, the stress is even more. Use the above checklist to ensure that you make the right decision at every step of this new journey.