11 Point Checklist for First-Time Dutchess County Homebuyers
Dutchess County homebuyers looking to purchase a house for the first time should be wary. It is a large investment, and many people go to a lender unprepared. If you are serious about making the step to become Dutchess County, do not overlook these eleven key points in the home buying process.
Houses for Sale
It is always best to look at the Dutchess County market. It is easy to find the listings in an area. Look at what is available and what price range these properties fall under. Use this information to help determine if that cost range is going to fit into the existing budget.
Monthly Costs
Many Dutchess County homebuyers only think about the mortgage cost. Owning a house is much more than paying a mortgage. There are taxes, insurance, mortgage costs, and unexpected expenses.
Depending on the cost of taxes and insurance in the area, that low mortgage payment may suddenly be twice as much.
Closing on a House
The costs do not stop with taxes and insurance. There are also closing costs when purchasing a Dutchess County house. These costs are charged by multiple people like the lender, associations, and to the local courthouse to process titles and settlements on the property.
These closing fees can be estimated before finalizing and should be researched before.
Budget
Having an intense view of a budget can help determine if a Dutchess County house purchase is a smart move. Most lenders recommend spending no more than twenty-eight percent of the household’s income on housing costs. If a house is going to exceed this amount, the income or the cost of the house needs to change.
Market
Chatting with a realtor about the Dutchess County housing market can help a potential homeowner make the decision to buy or wait. Realtors will closely watch trends in the area. They will know if prices are increasing or decreasing.
Smart Choices
Many Dutchess County homebuyers want to move away from roommates or living with a landlord. While it feels much better to invest money in a house that will someday be owned, sometimes making the purchase is not the smart choice.
There are many extra expenses that come with owning a house. With these added expenses, there is no landlord to fall back on when something breaks or needs to be repaired.
Preparation
Doing the research on the Dutchess County market and personal finances can greatly help the process along. Many people that skip this step will find themselves without vital information that a lender will need, and eventually slow the mortgage process down.
Credit Score
A credit score should be as high as possible before approaching a lender. The credit score will tell a lender if they should provide a mortgage, and it will also influence the interest rate on the mortgage. A poor credit score will make it much harder to obtain a mortgage, and will cause the buyer to pay more over the life of the loan.
Paperwork
There is so much paperwork that a lender will need to see. Tax information, pay stubs, current debt statements, and bank statements will be needed. Depending on the lender, they will want more or less information. It is easier to get all of this information together before the end of the process. This can stall the lenders from providing a pre-approval.
Pre-Approved
Going to a lender and getting pre-approved will make house hunting easier. It will be a clear answer to what cost range to look in, and any selling realtor will know that the buyer is serious about making a purchase. Talk to different lenders about their rates and policies before providing any information or allowing a credit check.
Grants
The down payment for a house is often a struggle to obtain. There are many grants or programs that help first-time homeowners obtain a mortgage. Some grants will cover a down payment while there are programs or loans that will allow for a very low down payment, if any at all.
Making the decision to purchase a Dutchess County house can be difficult. With these eleven key points, the process can run much smoother. All potential Dutchess County homebuyers should go through this list to learn more about their financial situation to see if making a purchase is the right avenue to take.