5 Things Nobody Teaches You About Buying a Home

Are you in the market to get your very own house and lot in the Philippines? Congratulations on being home buyers! You're about to make a great lifestyle change. Prior signing on the dotted line to own an affordable house and lot, did you know there's more to a house purchase than its price and its location? Lumina Homes compiled the things you must understand so you can get the best deal in buying your first home.

Critical Factors to Consider Before Your House Purchase

Down payment

Before you buy your own house, ask yourself this. Can you afford paying for new digs? A home purchase isn't something done lightly, especially if it's your first house. Many homeowners say that no matter what real estate experts say that you have to shell out a minimum down payment, it's not just the first down payment you need to worry about. There are things you also need to consider, such as closing costs, insurance, property taxes, and furnishings. These are just other reasons why you should ensure you are ready, mentally and in terms of finance before you consider looking at an affordable house and lot for sale.

Here's a tip to check if it already makes sense owning your dream home. Get your gross monthly income, then inspect if your monthly down payment amounts to no more than 30 percent of your monthly income. Experts say that this is a way to ensure you can handle this responsibility, let alone if you can still cover any existing debt and other recurring payments. This is where your debt-to-income ratio, comes in. If you have enough money to pay at least three monthly payment dues, then you have enough time to save for the fourth payment, until you have fully paid your new home.

Mortgage Payment

If you're up to the responsibility of owning a house, aside from the down payment, you should also prepare for the mortgage payment. In most cases in the Philippines, not everyone can afford to do an upfront house purchase. Hence, in the best interests of homebuyers, real estate agents now offer flexible plans and installments so you can acquire the property you want. You just need to be pre-approved by a mortgage company that can give you a lower down payment in order to secure a loan.

When you apply for a mortgage, you're borrowing money from a lender so you can buy a home. In order to repay your loan, they expect you to pay on a regular basis, usually monthly. Different banks can offer you their services at different rates, but most people go for a lender which is state-sponsored as they offer more flexible plans at lower rates.

In the United States, they have FHA loans that help low to moderate-income families pay for a house. But did you know we have our own version of an FHA loan? It is called the PAG-IBIG housing loan. Since PAG-IBIG is not your typical lender or bank, this government-recognized agency can be considered a mortgage company to help most homebuyers with their housing needs. To know more about how they can help you calculate your mortgage payment, you can check out their website.

Monthly Payments

Remember when we said your mortgage payment may be monthly? It's not just your mortgage that will arrive every month. There are other payments you need to prepare on a monthly basis.

If you have other monthly debt payments such as an existing car loan or credit card bills, you may need to consider if you can still have room for amortization or your monthly spread-out downpayment. However, you also need to factor in maintenance costs for your house, repair credits, and monthly payment for utilities. Otherwise, if you managed to get your own house and lot but are unable to assume monthly payments, then you're considered house poor.

Home Buying Process

Buying a house and calling yourself a homeowner isn't just about getting on tripping and falling in love with a house you feel comfortable with. Rather, it is a tedious process of investing more money, time, and effort to reach the right decision for your family and future children.

To launch your home-buying process, you need to get your own credit report, so you can also determine your credit score. After this, you need to evaluate if you can push through with financing the fees you need to finalize buying your dream home. If it will exhaust your emergency fund, then perhaps you need to have more savings to support this investment.

Should you have enough funds, it's time to do the actual home researching. You can do it online, or when you join tripping event or even check out foreclosed properties. You also need to consider the location of the house and lot for sale, as well as the surrounding neighborhood so you can have a rough idea of the property value. If you have children, you may need to check whether the housing development is near top-notch school districts so you won't have a hard time sending your kids to school. You can also try searching for a nearby store where you can have easy access to amenities such as groceries, amusement, and other important services, should you decide to live there.

If all goes well, don't forget to let a home inspector visit and do a walk-through of the property you are trying to buy. When you do this, you will have an idea of the risk and a realistic estimate of the repairs you may need to do once you acquire the house. This is especially true for old houses that underwent a flip.

With the result of the home inspection and your research about the property value, you will now have an idea of the actual cost of the house, which you can haggle with the seller, or even the seller's agent.

Real Estate Agents

Speaking of agents, the best advice that we can give you in your journey to becoming homeowners is to get acquainted with a real estate professional. There are many people in the market who claim to be real estate agent but fails to do the job. Hence, with professionals, not only will they personally see to it that you have your affairs in order, but they can also help answer your questions thoroughly and even focus on how they can address your needs from the project. Now, it's not easy to find a real estate professional who can build good working relationships, but once you do, your journey from home buyers to homeowners will become a reality.

If you're looking for a partner to help you achieve homeownership, then look no further, let Lumina Homes help you. Our representatives are helpful and can assist should any buyer have questions about finances or request clarifications. Are you ready to stop renting and start a home purchase journey? Send us a message today!