Buying a home is usually the biggest financial investment you will ever make in your lifetime. Report has it that 40% of Americans have their wealth buried in their homes. Highlighted below is a guide on buying a house alongside advice you will need as you deliberate on making that decision.

  1. Buy a house that will cater for a decade or more.

A home is an important form of investment serving as a backbone of stability. A prestigious housing company gave a report in 2017, that a large number of Americans who sold their homes that in the previous year had lived in their homes for about a decade or more before deciding to sell it.  While some still reside in their home as a permanent resort. The main gist is that you should buy a home you will live in for about five years and above and it should also be furnished with your desired space and characteristic useful for both present and future.

  1. Purchase the home to enhance your life, try not to consider much about the money:

A home is much more than just a financial investment. It is basically where you live your life. You raise your children; you sleep, dine, and entertain in it.

Due to the unpredictability of the housing market it is not advisable to purchase a home just because it will appreciate into something big later, instead buy a home that will cater for all your needs and will contribute to your life positively.

  1. Your focus should be on what you need the home for.

Do not let attractive features cloud over your needs. You should focus strictly on getting a home that will cater to your needs rather than the attractive features a home has got. Give focus to a home that will cater to your needs as well as fit into your budget rather than opt for attractive homes that might break your budget. Construct a list if your needs concerning your new home and it’s neighborhood. Then stick to securing a home that will meet these needs.

  1. Develop a budget and adhere strictly to it

In today’s market, it’s essential to have a planned budget as early as possible even before looking at homes. In more competitive markets, buyers extremely find it easy to go over budget. Based on logistics urban buyers are more likely to go over budget than the suburban or rural buyers with percent’s of 42%, 25%, and 20% respectively. What is more important is being realistic and identifying one’s limit.

  1. Go for a 20 percent down payment

It is better to opt for a 20% down payment. Buyers who do not put down a full 20% down payment will be required to pay a premium.   Removing the (PMI) private mortgage insurance does play an important role by providing a low mortgage rate and as result reducing financial burden.    It’s also of huge benefits to making a higher down payment due to its ability to minimize risk financially.   Sure 20% down is the best but many do not have that much saved.  There are many other loan programs available.

  1. Maintain a six-month planned reserve

It is very necessary to keep a planned reserve which will be kept separate from your main account. The reserve is to cover all your living expenses within six months; they may include your medical care, during unemployment and other unforeseen expenses. This planned reserve prevents you from financial hardship and renders you a peace of mind.  It looks better to a lender when you do have money saved.

  1. Make sure you Get pre-approved and also use a fixed-rate mortgage

All essential documents concerning your source of income, debt, and credit and others explaining all the loans options you can be opportune to, are needed for the process of pre-approval. It’s quite stressful but it’s better to do it early than later. The essence of the pre-approval process is to make the seller believe that you are a trustworthy buyer with the ability to pay at any given time based on your financial capacity.

The following mortgages are available for your choice: The 30-year fixed mortgage has a fixed rate of interest that can’t be changed for 30 years; the 15-year mortgage also has a fixed rate that doesn’t change for 15 years. These Common fixed-rate mortgages help in managing household budgeting in order for you to know basically how much you have to pay every month for years to come. You can see they are simple to comprehend and their current rates are very low. Another included benefit you enjoy is that you do not get tempted with a low initial payment in order to purchase more houses than your budget covers.

  1. Shop around in order to secure the best mortgage

Make sure you shop around for suitable mortgages even though it will cost you some few cash back. It is very advice to consider all available options before jumping at any offer.  Buckner Homes Realty recommends a few loan officers, which will help you find the right loan that fit your needs.

  1. Only a third of your after- tax income should be spent

It is not advisable to spend too much on buying of a home. At most one- third of your income is enough. You won’t want to find yourself financially stranded.  A good loan officer will help you understand what is included in a loan payment, Principal, Interest, Taxes and insurance and what you can afford.

  1. Be ready to walk away

Purchasing a home can be stressful, take your time.  Your realtor can help you know the differences between the homes they show you.  Some home are a great price but need a lot of fixing up (which cost money and time).   In order to curb spending out of the budget, you need to be able to walk away from offers that do not click with your needs. Remember there are loads of other houses, losing a particular house due to monetary reason should not dampen your spirit.