|
THE PROCESS OF BUYING A HOUSE
Purchasing your dream house cannot take
place without planning. Spending some
time to prepare and also, doing your
homework by looking in the right places
and asking the right questions not only
makes this process less stressful for
you, but also makes the ownership of
your house more pleasurable.
Getting Organized
You need to get a note book and a few
pens. You should have a few file folders
that will help you organize your bills
and documents related to the loan
applications. Having a telephone
directory or access to a laptop or a
computer will help a lot. After each
call, write down the phone number, the
contact name and also a short comment
about the conversation you just had, in
the note book.
Homeownership versus Rent
For a few people renting a house is a
better option than getting one of their
own. The best way to find this out is to
compare the costs that should be borne
by you in each case.
Under the ownership column, you should
include the mortgage payments, taxes and
insurance. The next item in the same
column is utilities which include cable
costs, telephone, waste disposal, water,
electricity, oil and gas.
Co-op Fees and Condominiums
Some of the 1st time buyers
would like to go for a co-operative unit
or a condominium since the maintenance
and utility costs are part of the
Homeowner’s association fees. Under the
ownership column these fees’ must be
included and all the utilities might not
be covered under that fee. Contact many
homeowners’ associations and find out
which utility fees’ are included in the
HOA fee.
Mortgage Credit Certificate
You will get a federal tax credit under
the “Mortgage Credit Certificate
Program” for the interest you pay on the
mortgage. Almost all the states take
part in this program. This credit will
increase the owner’s take home component
and make up for the costs of maintaining
and owning his home. Contact your county
and state housing departments, employer
departments and area realtor for more
information about this program.
Maintenance Costs
Maintenance costs include many items
ranging from roof repair to lawnmowers.
Leaky faucets has to be repaired,
windows caulked, maintain heating
systems, mow the lawns and prune the
trees. Put all these costs under the
homeownership column.
“Home Improvement Grants”
Several counties and states provide home
improvement and repair grants to owners.
You should own the house to avail these
grants. Having a good knowledge about
the uses of the grant, property types
and the eligible areas will prove useful
after you purchase your house.
Intangible Costs
Repairs, maintenance, utilities and
mortgage payments are a few of the
tangible cost. There are several
intangible costs which should be
included in another list. Find them out
and include them under the ownership
column. These costs can be found by
asking a few questions like:
Why am I buying this house?
Can I maintain the house?
Will I be able to buy a toolkit for my
house? |
