5 Things to Know When You Buy a New House as an Entrepreneur
If you’re hunting for a new home, you’re probably feeling excited. You should be! A new home is a great chance for you to put down roots, express yourself, get a bigger yard for your family, or have extra room for an arriving baby. A new house isn’t all good news, however. A new home can be stressful, costly, and complicated. But, yours doesn’t have to be. If you appropriately navigate the pitfalls of new home buying, you’ll have a pain free process. Your home can be a source of joy and comfort instead of a huge hassle. You just have to come prepared.
Boost Your Credit Score
You’ll get a much better deal on your house of choice if you have a good credit score. A good credit score is easy to come by if you’re reliable and pay your bills on time. It’s a good idea to wait for a home investment until you can build a good credit score, so if you have a bad credit score you need to erase, or haven’t yet worked your credit score past 700, you should work on improving it before proceeding.
Decide What You Can Afford
Knowing how much a home really costs can be tricky. It’s more complicated than your estimated mortgage payment on Zillow. In order to really understand what you can afford in a new home, you should consult an expert. Remember that your monthly loan payment shouldn’t be more than 28-31% of your income. Keep it low, and aim for something lower. You’ll have less stress and a happier life if you stick with something simpler.
Once you know what you’re aiming for, it’s time to start saving. You’ll need a good chunk of money upfront, and you’ll need to have enough on reserve to pay your mortgage during unexpected low points. If you find that you can’t afford your home upfront, and are in need of loans, you can contact private money lenders if you can’t get approved for more traditional loans. You should also have savings accounts set aside for yearly home repairs. Be ready for that broken washing machine!
Prepare for Potential Repairs
If your home of choice was poorly constructed, or built several decades ago, you’ll probably need to repair several things before it’s move-in ready. A home with a cracked or damaged foundation will be in need of concrete repair, and a home with outdated electrical wiring will need to have its wiring replaced. You’ll need to be financially ready for these steps, as well.
Once you’re financially prepared for your new home, you’re ready to start looking. Your price range will help eliminate the excess options, so you won’t feel swamped and pressured while you search for your ideal home. You’ll likely lose a desired home or two, if someone else closes first, but sooner or later, you’ll have found the perfect place for your family to grow.