Everybody at one point or another makes sacrifices to get themselves out of debts. These sacrifices involve cutting your budget and with a heavy heart renting out a living space instead of owning one. In cases where one does own a house, it is more probable that it is just a small living space instead of what can be labeled as their dream home. It should be understood that achieving your dream home requires a plan and a whole strategy to be laid down years in advance. Some of these strategies that require preplanning will be discussed below:
Saving money is the first good habit
Saving money is a habit that will work for you in every case. It will ensure that you pay your debts on time and become financially stable as early as possible. Before even thinking of buying a house, one should save up for an emergency fund as a savings account or even equity funds. According to Dubai consultancy, ideally, a down payment of 100% should be made to get the best home loan rates. If this is not achievable, even 10-20% will work well.
Preapproval will help you more than you think
Before even starting your quest of house hunting, it is important to get pre-approved by your mortgage lender. Being pre-approved means that you fulfill the mortgage lenders eligibility requirements to receive a home loan. This gives sellers the impression that you are a serious client whenever you show an interest in their home. It is also recommended to associate yourself with a real estate agent who is experienced and has the ability to offer you the best deals on your new home. This move will put you on the right track and avoid any mishaps happening in your journey.
Take advantage of the buyer’s market
Sometimes due to different economic trends, locales do become desperate enough to sell their houses, this is the perfect time to take that leap forward. Ask them to pay closing costs and pay for all the repairing work. Also, bid at least 15% below the asking price to make a wonderful bargain. Buying from a builder will benefit you more than buying from a homeowner, as the homeowners will prefer waiting until they get a better deal. Builders cannot afford to wait that long and besides you can also ask them to buy your mortgage rates. This move will give you more perks than any other in the long run.
Keep moving up to more expensive houses to finally get your dream home
After selling your first house, gather together the profit you received and any other money you saved. This can help you buy a house that is bigger and more expensive than your last. This move may especially be possible if your income has increased in the meanwhile or your debts have gone down. For your next house, you can make even bigger down payments and then resultantly when you sell off this place you can expect more profit which can lead you finally to your dream house.
Enjoy the post-settlement phase in a more responsible manner
Now that you are finally a homeowner, you can finally relax-or not. While you know that you have made an expensive purchase, you should also keep in mind that the bills are just beginning. To save on interests it is better than you pay your mortgage on a weekly or fortnightly basis instead of monthly. It should also be kept in mind that unexpected expenses will keep popping up and an emergency savings account should be set up for that.
While buying a house brought the best in you in terms of emotional and financial maturity. Let this sink in that this was not a journey that has ended after the purchase of your dream house. You will soon realize that buying a dream house does not always constitute a house on top of a hill with a chef’s kitchen and four car garage, instead, sometimes a dream home may simply be a place where you can rest mortgage free. Hope these tips help in the long and rewarding journey of house hunting!
Brenda Cagara works with a group of professional business consultants (Riz & Mona). With them, she plays an essential role in company formation, setting up business and providing a number of other services. These include visa processing, trade mark, local sponsors, bank account opening, trade license, product registration and a lot of others. She started her writing career five years back and now is an expert writer on different niches. Her writing strengths lie in business, loan, taxation and finance niche.