3 Must-Do's When Buying a Property

Whether it is residential or commercial, buying a property should be a well-calculated endeavor on your end. There are several must-do's you need to prioritize and it starts by preparing yourself in a lot of aspects – financially-wise and knowledge-wise.

A first must-do when buying a property is to find out how much you can afford in the first place. Buying a home should make you financially comfortable and not miserable. There is no point in finding a property that costs twice compared to what you can actually pay for. There are several ways to know how much you can afford when buying a property. 

1. You can use a mortgage calculator. A mortgage calculator lets you know how much you can borrow from the bank based on the annual income that you are getting, the interest rate that applies currently and the length of the loan that you can work out. Second, identify your debt-to-income ratio. This basically shows you the part of your income that you can direct towards the settlement of your loan should you be approved for that loan. Ultimately, the amount you can loan should be commensurate for you to borrow in the first place based on what you can generate on a per annum basis. Third, know your loan eligibility. Know what your credit score is as this indicates how much you can borrow. A high credit score will allow you to borrow more than if you have a low credit score.
2. Get pre-approved. Have all the necessary documents ready such as payslips, a letter from your employer, bank records, list of assets and credit card statements, etc. You have to show to the bank or your lender of choice how much you earn, what you currently own and what you owe. Have your IDs prepared too for validation. Why should you get pre-approved even before you start looking for properties to purchase? First, you need to get pre-approved anyway, so why delay this important step in the procedure? Second, getting pre-approved can be a long, tedious and sometimes frustrating process that you need to go through. You can meet disappointments along the way as there could be instances when your application will not be approved and you need to look for other means to do so. Third, it can save your time as well as your real estate agent's. If you find the perfect home, but you are unable to buy it primarily because the bank denied you of your loan application, you need to channel your attention towards cheaper properties that you can afford. Your pre-approval will allow your real estate agent to filter properties for sale that you have the capacity to buy. 
3. Find a real estate agent that you can trust. The real estate agent you will hire will be your representative as you make your way into buying a property. Aside from being your representative in the industry, this person will be responsible in giving you the current market prices available, the homes for sale that you can buy based on your capacity and other valuable information that will make it easy for you to purchase a home. Take your time when choosing a real estate agent. Research well, ask friends and family about agents that they can recommend to you. Look for their credentials and affiliations for your peace of mind.