Buying a new home is a great accomplishment, especially for the regular folks who have to take out a considerable mortgage. With the proper planning, you can ensure that you have an enjoyable home-owning experience.
Owning a home comes with a considerable amount of joy and pride. It gives you total control over your living space, which is a great way to improve your quality of life. However, most people can’t afford to buy a new home without an established line of credit.
That, in part, explains the popularity of mortgages in Salt Lake City as people move forward with their home-owning dreams. For the best results, when going down this road, you need to take a few precautions.
Stick to your lane
Foreclosure and underwater mortgages are some of the words that strike fear in the hearts of many homeowners. It’s in your best interest to avoid being caught in either of the scenarios. Keeping within your financial capabilities when buying a house is a great start.
People who go big when buying a home risk foreclosure. That happens when you buy a house that taxes your finances to the limit. When you’re this debt-burdened, you’re only one emergency away from defaulting on your monthly payment for a long time.
When that happens, it pushes the lender to foreclose the loan. Creating a home-buying budget and following it to the letter keeps you from becoming part of these statistics. It ensures that you get a home you can afford and enjoy the home-owning process right from the start.
Plan for repairs
Most people opt to buy a new home because they are keen to avoid problems with the more expensive items, such as the plumbing and electricity systems. However, they fail to take a fine-comb through the warranty, and that’s where things go wrong.
See, these warranties have an expiry date. Before you know it, you’re no longer covered. Major components such as the drywall and sidings are often covered for a year. Others such as electrical and plumbing systems carry a two-year cover. Fortunately, foundations and roofs mostly come with a 10 or 5-year cover.
It’s imperative that your budget carries a little extra money to cushion you from unexpected costs and routine maintenance. Failing to do so makes it challenging to keep the home in a pristine condition. A house in disrepair often plummets in value, sucking the joy out of the experience.
Check the Homeowners Association Rules
While many of these associations are formed to create a harmonious living space, some of them overstep their mandate. There are numerous cases where residents have ended suing their HOAs for being unfair and draconian.
Be sure to read up on all the rules to know what you’re getting yourself into right off the bat. The last thing you want is to join a community where the HOA expects you to carry out expensive home upgrades every so often. Since joining an HOA is mandatory, it’s critical that you take note of the annual fees and other associated costs. You’ll want to factor these costs into your monthly housing budget.