Moving up the property ladder

Everyday the news about the housing market is worse than the day before. Now there are close to 2 million homes up for foreclosure in the USA and countless banks have gone under. So is this the time to buy a house? There is no doubt that the houses are a lot cheaper to buy today than at any point in the past decade.

However, for those who plan to get a house on a big mortgage, forget it. Most banks are in such dire states that obtaining a mortgage will be like breaking out of Fort Knox. However, that does not mean one can’t buy a house. Sure, if you have a decent amount saved up, or have a fair amount for a down payment and have a decent job with a good salary, then this is the perfect time. However, one must go slow. Today, the buyer holds the advantage- assuming he/she has the money. If you have the money, then you call the shots.

Unless you are Bill Gates, buying a home today is costly. And even though you may think that you have a fair amount saved up, getting on the property ladder does not come cheap. Paying for the house is one thing, but there are other costs which can quickly increase. The other costs that one usually forgets include the cost of a professional home inspector to ensure that the home you buy is safe and not a disaster, the legal fees, property taxes and the costs to connect the light and water. Then there is the furniture and moving and all the rest.

The number one thing is to get the right location. Since many great homes are cheap do not get one far from your work. Houses in the countryside may be bigger and cheaper but you will end of paying a fortune for the gas. And the way the gas market is going, not many of us will be able to afford cars. So getting a home close by your work and next to the schools.

If you have never bought a house before and have little clue as to what is involved, you must read. The internet has ample sites where one can obtain knowledge about home buying. After being well acquainted with the housing business, one should talk to a financial lender. You need to know what your budget is and what you intend to buy. If you do not have much money, you are going to need a loan. So here is where the financial lenders come in. And more than anything else, you need a stable job. House buying today is usually easier when both individuals earn a living. If one individual is the bread winner and gets laid off, you are in hot water (to put it mildly). So a stable job with a decent salary is the key. If you do not have any money for a down payment, then the best advice is to wait and collect some. Usually you will need about 10-20% to put down towards a new house.

While renting may not sound attractive to you, buying a house prematurely can be nightmare. Just read about the American housing situation and you will find out.