Fulfill that American Dream: Buy an American House

Here are some tips and pointers to guide first-time house buyers in the USA. A lot of people move in and out of their rented apartments or boarding houses every single day, desperately looking or a better home. Others say that this is impractical and unrealistic. There might be some things to consider before you purchase your house in the United States, but you should think of it as an investment. What could be greater than owning a house which gives you a feeling of security and belonging?

The thing is, why rent a place that is less than what you deserve, when you can buy your own house? The dream of actually owning your American house may be just within your fingertips.

Now, the first question you must ask yourself before house-hunting is “What do I want?”
List your preferences—probably the way your house should look like, or how many bedrooms should it have, how big should the garden be, et cetera. After listing everything, you can now canvass for the house that meets the most number of qualities you prefer.

However, sometimes your expectations may not be achieved. You now have to decide which quality of the house is more important. Here are some pointers to guide you in looking for your American house.

How much are you willing to spend?

All markets are different from each other. Find out first how much you can afford. You do not pay cash immediately when you buy a house. What you do is you loan a mortgage from the bank. The burden of having to shell out a huge amount of money in one go is lifted from your shoulders. You usually pay your mortgage every month for 15 or 30 years.

Sometimes, you can also make a down payment of 5 to 20% of the house price. When you give a higher down payment, chances are it will be easier for you to get a loan. The lower interest rate you get, the lower your monthly payment will be.

What if you do not want to make a down payment? There are banks that offer zero-down loans.

Get in touch with a loan officer

The best way to find the best house that you can afford is to get in touch with your loan officer. This won’t cost you anything. After your visit to your loan officer’s office, you’ll be more informed of what you can afford—based on your income, assets and liabilities.

Get a mortgage

Getting a mortgage is as simple as ABC. All you need to have are the following:
1. Cash for down payment.
2. An income twice or thrice higher than your mortgage payment.
3. Employment history of two years.
4. Decent credit history.

Kinds of mortgages

There are several types of mortgages that you can avail of. First is the Fixed-Rate mortgage. This kind of mortgage will remain steady for the time you have taken your loan up to your last payment.

Next is the Adjustable-Rate Mortgage (ARMs) that increases or decreases depending on the market performance. It is usually offered at the lowest price possible; but you can expect your payments to increase once or twice in a year.

Aside from the two mentioned above, you can also mortgage biweekly. These mortgages are due every two weeks. Costly? Think again. You can actually pay your mortgage easier and faster plus you can save in interest.

There is also an adjustable-rate mortgage with an initial fixed rate. This means your mortgage allows you to pay fixed rates for several years, but after a certain period, your mortgage will be adjusted every year.

Lastly, you have the Balloon Mortgage. With this option, you can pay the lowest interest rate for a specified period, but after that, you must complete payments for your remaining balance.

How to deal with additional costs

You must keep in mind that there are additional costs entailed in buying your house. You will need some spare cash for closing costs, inspection and impending expenses. What are closing costs? They are the cost charged by the businesses and government offices that handled the loan and sale of the property. Usually, the closing fees are from 2 to 7 percent of your house’s actual price. Now, do not be discouraged. Even if first time homeowners have to pay for insurance of the house for the first few years, keep in mind that you are investing for your family.

Also, you can have your lawyer or a very good loan officer and mortgage officer to help you in managing your payments.

What are you waiting for?

Now that you already know what to take into consideration when buying your house in America, you still have to decide on a few simple and more fun things. Question number one: what kind of house are you looking for, exactly? Is it a condominium, a co-op, a townhouse, or a mansion? Be sure that your prospect house suits your ability to pay and maintain. No matter how hard it may seem; the idea of having a house of your own will surely take those house-hunting blues away!