Oakland, CA is one of the most beautiful states in the United States to live in. It has breathtaking houses that are ideal for many aspiring homeowners. Owing to a home, however, has several challenges that come with it especially for first time home buyers. Any aspiring home owner has to carry out due diligence before settling for any Mortgage Loan.
Get a realtor to advise you on the best loans and the requirements to be eligible for such loans. Most importantly, ensure that you search for a house in a community that is still growing. That way, you are assured of a higher return on your investment if you decide to resell your house.
When buying a home, you have to consider the following;
Types of mortgage loans options available
If you are planning to borrow, first know which loan options are available for you. You need to know your credit standing and the amount of money you will need as a down payment. You need a good credit history to be eligible, but there are some that are flexible. One such mortgage corporations are FHA.
FHA stands for Federal Housing Authority. They charge 3.5% of the purchase price as down payment. It is a leading lender that does not require a not so perfect credit standing. To acquire these loans, you need to have a steady income. It is a prerequisite, and all the information about your employment history and tax returns have to be availed.
A good credit history is necessary to acquire these loans. The beauty with FHA loans is that they are assumable and they require very little down payment. Their interest rates are very attractive, and you don’t need a very high credit score to acquire these loans.
Median house prices
When searching for a home, it vital that you do a thorough research. In your research, write down the prices of each house that you visit. Make comparisons to find out which one is the most affordable. To find out if a house is affordable or not, identify your gross monthly income. Then compare this to your monthly expenses and the new home details like down payment, interest rate, real estate taxes, loan term and homeowners’ insurance. If at the end of this comparison you don’t strain yourself, then the house you settle for is affordable.
Your income is what will determine your eligibility for a home loan. Most lenders will look at your employment history and if you have a steady source of revenue. It will also help you settle into a house that you can easily afford. Home ownership comes with several expenses that you will need to cater for, and that will require an enormous expenditure.
School systems and national ranking of schools
Houses within a community with several schools are likely to attract so many buyers. Schools make a place so prime because chances of properties appreciating in such areas are very high. If you are looking for a house, look for a house that ranks well regarding the number of schools within the neighborhood. The schools also have to be high performing schools that offer top notch education. This way in case you decide to resell your house, you will sell it at a higher price and therefore get a return on your investment.
Crime rate compared to state and national security
House within communities with high crime rate could be cheap but may end up being expensive in the long run. Before buying a house, ensure that you understand the area first. Prices of properties in crime prone area will always stagnate or drop and this could affect your investment tremendously if you are planning to resell in future. You will also not be safe in a place whose crime rate is so high.
Owning a home is one dream that so many people work towards. It is only right that you take the necessary precautions and avoid the common mistakes that first-time home buyers make. A real estate agent in Oakland, CA will come in handy to help you identify which loans to go for depending on your income and which areas are prime.