Tips For Buying A House In USA (United States America) Credit And Cash – A house is one of the primary needs that must be owned. It’s just that the price which is many times the salary makes many people consider many things to buy residential property. So tips on buying a house must be known, especially for those who are doing it for the first time.
Buying a new or used house does require a strategy/consideration so you don’t regret it later. Not to mention the different payment methods, both in cash and credit.
In addition, every year house prices continue to increase even in the era of the new corona virus pandemic. So you have to know what house to buy, whether it’s a mortgage, a used house, or building a house from scratch.
Tips For Buying A House In USA Credit And Cash
For families who are young/new, they will usually be a little confused about buying a house because many developers provide types of houses and competitive prices. In order not to be curious, you can follow these tips for buying a house for young couples.
Steps Buying A New House In USA
a. Pay attention to family needs
Tips for buying a house with cash / credit must first know what needs are needed from a place to live. You can discuss with your family some of these issues:
- How much room is needed?
- Will it be renovated in the future?
- Is it necessary to have a large garden?
- You need a car garage?
If you have found the answers above, it will be easier for you to buy a house in Jakarta or outside the capital city according to your needs and tips. You can also use these notes as a reference to sort out where you and your family live in the future.
b. Use a real estate agent or find your own
Now you can buy a house through a property site and it’s even easier. You have the freedom to search, compare and contact homeowners directly from the ads displayed on the site.
If you want to find your own home, you must have enough time to do everything. In addition, you can also ask the services of a property agent to find your dream home according to your wishes. It’s just that you need to prepare a commission to pay property agent fees.
c. Location and Access Your Dream Home
One of the determining factors to consider is location. This factor is also related to housing access and prices. A house located in the center of the city certainly makes it easier for residents to travel everywhere. It’s just that the price of land will definitely be very expensive so prospective buyers need time to save longer.
While suburban homes are cheaper, it just takes longer to travel downtown. The solution, you can look for a house in a suburban area that is easily accessible by public transportation if the budget is limited. Buying a house close to stations, terminals and bus stops, is a tip you shouldn’t miss because it’s a plus.
d. Pay attention to the environment you live in
Tips for buying a house in Jakarta or other areas, by paying attention and knowing more about the condition of the surrounding environment. You need to make sure that the house is flood-free or in a healthy area.
So when it rains, you don’t have to worry about evacuating or storing valuables. In addition, make sure the environment must also be safe from cases of theft, brawls between residents, robbery, and other bad things.
e. Facilities around the house
You must know that a comfortable home is certainly close to various facilities and amenities. For example supermarkets, ATM machines, and hospitals, are facilities available near the house. Even better if the house is close to a favorite restaurant, mall, or entertainment venue. So you have to know what facilities are around before buying a house. These buying tips apply to all types of homes, even in complex housing.
f. Reasonable price and choose suitable payment scheme
The thing that must be considered when buying a new or second home is to conduct a survey to several places with the same price. The goal is that you can compare which house best suits your financial condition.
In addition to price considerations, choosing a payment scheme is also important, especially if you want to take out a mortgage. Just a note, if you buy a house using a mortgage, it means that the total price to be paid will increase from the cash purchase price.
g. Specification of house building materials
Many people are indifferent to the type of material used to build a house. In fact, this is an important factor to know. You can see the various considerations below:
- A house with brick walls is stronger than just using bricks
- Floors with concrete slabs are more durable than floors that are only cemented and ordinary ceramics
- Lightweight steel roof truss is better than wood truss
Considering the above, you should ask about the materials used to build the building, according to the concept and budget of course.
h. Design the house as you wish
The shape of the house certainly reflects the personality of the owner. If necessary, you can look for a house whose design suits you and your family’s tastes. Open-minded people usually like homes with lots of windows and glass walls.
In addition, many also like houses with semi-traditional designs. People who have more budget will usually hire the services of an architect to make sure the house design matches their personality.
If you bought the house through a developer, you can choose the renovation option. Currently, many developers have given their owners the freedom to design custom homes.
i. Potential Home Changes in the Future
Buying a house is like making a long term investment. You have to imagine what was done to the house. You may consider the following:
- Are you going to sell in the near future and then buy a house in another city?
- Would you add a few more rooms if you had kids?
- Or do you intend to take care of it for life and pass it on to your children?
You should pay attention to these tips for buying a house and prepare it so that it is not a hassle in the future.
j. Home Health
A healthy home must certainly support the health of you and your family. Here are some things you should consider:
- Waste treatment and drainage system
- There are adequate ventilation and windows so that fresh air and sunlight can enter properly
- The surrounding environment is always kept clean and not shabby
Most people buying a home for the first time will happily ignore the basic tips. This is natural, but don’t be blind to regret buying a house.
Tips For Buying a Home Credit
Not everyone has the experience of buying a cash house because it is difficult to collect hundreds of millions or even billions. One reliable solution is to apply for a mortgage loan so that it can be paid in installments every month. Here are tips for buying a mortgage or mortgage that you must understand:
a. Understand your financial capabilities
Credit institutions or banks will give you a good score if you pay the installments correctly. But before applying, you can estimate whether you are eligible to pay the mortgage.
The trick is to find out your own debt-to-asset ratio. The value of the debt-to-asset ratio shows how much of your assets are financed by debt. You can calculate it by dividing total debt and total assets and then you can get a score for this ratio. The ideal ratio value is below 50%.
If the value is more than 50%, it means: the value of your debt has exceeded the value of the assets. This indicates financial health, so you should correct this ratio before applying for a mortgage.
b. Don’t go into debt if you don’t have an emergency fund
You should secure an emergency fund and ideally, an emergency fund of 3 to 6 times your monthly expenses. The more dependents means or the higher the risk of your job, the greater the need for an emergency fund.
c. Invest funds for a down payment on a house
You must determine when to buy a house and pay a down payment (DP). In addition, determine costs for other expenses and set aside money regularly in investment instruments. If you aim to buy a house in the next one to three years, you can save your home purchase savings in an investment instrument that is low risk and has a fixed return.
In addition, you should avoid placing funds in high-yield and high-risk instruments because the term of your deposit tends to be short. Market risk in the near future can affect your investment returns. Interested in trying these tips for buying a mortgage?
d. House installments per month do not exceed 35% of income
Credit institutions or banks can approve mortgage applications with a nominal installment of 50% of monthly income. But you need to know that the ideal maximum mortgage is 35% of income. The reason is, so that you don’t need to reduce expenses for daily basic needs, insurance, to investments to be allocated into installments.
e. Families must stay safe
Death can happen to anyone, including people who are repaying the house. Of course we do not want to leave a legacy in the form of debt to our beloved family. Therefore, if you have debt, you should be covered with life insurance.
Usually every mortgage comes with a life insurance contribution to prevent the risk of the debtor’s death. Life insurance has various benefits, not only useful for paying off the debtor’s inheritance, but also for the living expenses of the family left behind.
You can choose insurance with a sum assured that can cover your credit ceiling. In addition, you can also choose insurance that provides a sum assured at least double the total debt you have. In terms of coverage, you can find the best life insurance in Qoala.
f. Not in a hurry to expedite repayment
Tips for buying the next mortgage house by not rushing to speed up repayment. The goal is that you are not subject to an early repayment penalty that will appear. Unless you apply for a sharia mortgage.
Paying off your installments early will not only force you to spend more money, but it will also leave you short on assets or current liquidity. One of the considerations of financial health, the ideal amount of current assets (cash or cash equivalents) is 15% to 20% of total net worth.
Of course the existence of a new home will increase the value of your assets which will affect the value of your net worth (total assets-total debt). The higher your net worth, the more current assets you should have.
Tips for Buying a Used House
Buying a used house is not as easy as it seems because it requires its own strategy and tips. The goal is not to regret buying a house because the loss is not only in the form of millions of rupiah, but also the comfort of the family. Here are tips for buying a used house with cash or credit.
Buy a house from the first hand
You need to know that the best way to buy a used house is directly with the owner himself, aka without intermediaries. Because you can get detailed information about the house you want to buy. By buying it directly, the price is also cheaper because the seller does not have to pay a commission to the middleman or broker.
Choose the right intermediary or broker
If you are forced to buy a house through the services of a broker, you can choose a trusted broker. You can ask the property broker for references about the relationship. If this is not possible, you can use the services of a well-known property broker who already has good credibility. Brokers will assist in the process of processing home purchase documents, including when applying for a mortgage if you plan to buy a house in installments at the bank.
Ask the age of the house
Tips for buying a used house so as not to be fooled further, by grouping the age of the house building. Starting from new (less than 10 years), medium (10 to 20 years) and old (more than 20 years). Also ask when was the last time the renovation was done if ever.
Of course the above is not a standard benchmark because there are various other factors such as the type of structure, the quality of the building materials, and the quality of the workmanship of the house. It’s just worth noting that the older the building, the lower its performance. That means you must be prepared to budget funds to renovate the house.
Location of the house
Like buying a new house, these tips also apply to the old house. The location of the house greatly determines all aspects of your life and that of your family. You may consider the following:
- There is access to transportation from the location of the house to be purchased with the workplace or place of business
- Avoid traffic jams as much as possible (In Jabodetabek almost all places are jammed)
- Check the location of the house several times to calculate the time and distance traveled
Check the physical condition of the house
One strategy to buy a used house that should not be missed is of course checking in detail the physical condition of the house in every part. If necessary, you create a checklist to make it easier for you to carry out the inspection. It is even better if you invite a contractor to assess the current condition of the house. Consider the following:
- The condition of the structure of the house, is there a carriage in the foundation, walls, columns, and beams
- Check for spots of groundwater seepage on the walls
- Is the quality of the floor still good or has it been reduced or cracked?
- Check the condition of the frames, windows, doors, ceilings, there may be traces of termite attack
- Make sure the roof structure is still in good condition. Look, maybe the beams/curtains are porous, or there’s a serious leak in the gutters
- Don’t forget to also check the condition of the PLN electricity network at home, is it still good or chaotic?
Is the water quality still decent? Also check the water network if it is still in good condition
Don’t forget to feel the room, is it fresh, humid, or does it even feel stifling?
Check the environment around the house
As a prospective resident of the house, you must have information about the conditions of the surrounding environment, especially if the house will be occupied with your family. Do not let you regret buying a house because it turns out that the location is difficult to access, far from educational facilities, prone to crime, or frequent floods.
Check house documents
These tips for buying a used house are of course very important because they are related to legality. You must check the authenticity of the House Certificate (SHM), Building Permit (IMB), proof of Land Building Tax (PBB), and cross check all these documents.
If the name on the document does not match the name of the seller of the house, you can ask for the status of the relationship. If the name transfer process has not been carried out, you can request a valid Sale and Purchase Deed for the house.
You can ask how many legal heirs if the house is an inheritance. This point should be underlined in order to avoid disputes and so on.
Don’t forget to be diligent in checking the information on the market price of land and houses around the location of the house. So you can bargain within a reasonable price range. This is important if you want to buy a house and then resell it.
Pay attention to the water source
A person needs about 10 gallons of clean water for daily activities. Good for consumption, bathing, cleaning the house, washing clothes and dishes, cars, and much more. Given the vitality of water, you should think about water sources and supplies before buying a home, whether new or used.
You must check the nearest water source from your prospective home and make sure this water source provides clean water that is suitable for daily use and consumption. A good location for the pump or drill hole at least 10 m from the septic tank in the house.
If the distance is less than 10 meters, most likely the water is not suitable for use because it is contaminated with soil and toilet waste.
In addition, if the former house uses a PAM type of water source, make sure the homeowner does not experience water bill problems.
Pay attention to the availability of electricity
These tips for buying a used house are no less important than the points above. You should check the electrical power in the house, is it enough to meet all the electronic equipment if you plan to install enough electronics. If it’s not enough, you can add power online through the PLN website. Also make sure the cable is in good condition to avoid an electrical short.
Take a week to complete your selection
You can take a minimum of seven days to decide to buy a house. The goal is to be more convincing before making an offer. There may be aspects that you missed and you can go back to detailing them. Remember, you have to think carefully because you may be living there for 20-30 years.
The importance of using property insurance
Buying a house certainly has risks because it costs a lot and many people buy it in the long run. One of the risks that haunt long-term credit financing is death. Leaving the mortgage debt to the family is also not a good action because it will add to the financial burden.
Those are tips for buying a house in the USA on credit and cash, whether it’s a used house or a new house. Steps to buy a house in Canada, Australia, New Zealand, the Netherlands, and the UK will be discussed on the next page.