July 25, 2019
Are you ready to buy a home? If you aren’t sure, there are some ways to know what’s left to be done before actually filling out the loan paperwork. Buying a home with an FHA loan is easier with some advance preparation and planning.
Set A New Budget
If you haven’t made a new budget that includes a potential mortgage payment, you should look into those numbers before you apply. You need to know how much your new house payment will affect your existing budget, and don’t forget to include extra funds for maintenance and upkeep of the home.
You may need to factor in the cost of minor replacement needs, and you will also need to consider the initial outlay of cash that may be required (apart from the down payment and closing costs) for items such as a washer/dryer, dishwasher, etc.
Not all house sales include appliances in brand new condition so you’ll need to anticipate such needs in advance.
Decide In Advance What Kinds Of Homes You Don’t Want
This is helpful regardless of whether you decide to use a realtor or not. Do you want a house with a garage and a “mother-in-law apartment”? That means you’ll be ruling out homes with no garage or very small garages.
Are you interested only in condominium units? Or do you have fewer preferences about the type of home as long as it has certain amenities like off-street parking?
This is not a problem in rural areas, but those buying homes in New York City, Chicago, and other metro areas may find a wide range of real estate options including those without garages or off-street parking options.
That’s only one feature, but it’s an example of the type of planning you will need to think about before getting your loan paperwork started. And don’t forget that whatever type of home you choose, that property must pass the FHA appraisal process and there may be required corrections or repairs needed to a home to make it loan-worthy.
That’s a consideration you should add to any budget considerations mentioned above for home loan budget purposes.
Decide In Advance What Kind Of Neighborhood You Need
New parents may wish to find a home with a park nearby, or close to local schools or child care centers. Some people are more sensitive to loud noises, light pollution, or high volumes of traffic; is your potential new home near an airport or major highway?
This is the kind of advance planning you want to engage in when selecting the neighborhoods to house hunt in.
Some people prefer the bustle of city life and should explore their options in areas next to public transportation such as a subway or elevated train. Others want peace and quiet and may wish to restrict their search to rural areas or suburbs that have been fully developed for a long time.
What are the right choices for you? You don’t have to go it alone when trying to find the right neighborhoods for you-a real estate agent can help, or you can explore home sales online with a variety of websites and apps to get a headstart on the search for your new home.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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