Buying your first apartment is certainly no easy task. There are many things you should take into consideration. Now, with some friendly advice, you won’t need to lose much hair to it. Or money, for that matter. Don’t worry. That’s why we’re here for. In the article below we’ll show you some tips on how to plan your budget properly when buying your first apartment in Austin, TX. People can get carried away when they draw the budget outlines. Just to be sure you’re not going to make that mistake, read the text below thoroughly.
Find some pen and paper
Getting everything down on paper is the best way to ensure you’re not going to miss out on some expenses in your overall calculation. Buy a new notebook for the occasion. If you’re a more digital type of person, make a new Excel sheet. You’re starting a new page in your life. It’s most important you do the whole organization thing most efficiently. Being organized and tidy is the key to success in this kind of situation.
This can be the title of your first page in the notebook you’ve selected for this occasion. Will you spend a lot of funds on the moving expenses? Probably not, although it depends on the location of your previous home. If your home state isn’t Texas, you’ll probably need to hire a moving company to help you transport your things. That can sometimes turn out to be expensive. Although, you can always choose to do all the preparations and packing yourself. That way the movers will only load the truck, do the transport and unload the cargo at your new Austin address. It’s called the self-service option. Anyway, contact moving companies in your area to get a moving estimate.
Consider renting a storage unit (pickup and delivery)
While on the subject of moving services, it might be best if we’d mention a relatively close service. You’re right, we’re talking about storage service providers. The thing is: you’re going to need some space while moving into your new home. If it doesn’t hurt your budget much, it’s recommended you consider hiring a pickup and delivery storage service. It’s a very useful service to cater to your needs, make no doubts about it. For those who don’t know what does the pickup and delivery part stand for, here’s a quick definition. Storage providers come to your door and take away all the stuff you’d rather store somewhere safe for a certain period of time. If you’d want a stored item delivered to your doorstep, just call them and your will shall be done.
Be realistic about your funds
How to figure out if you can really afford the apartment you’re planning to buy? Well, you’ll need all sorts of things in the calculation. Calculate your monthly sources of income, make a list of monthly expenses, and add some extras that come with homeownership: property tax, repairs, etc. Experts suggest your housing costs shouldn’t be above 25 to 35 percent of your after-tax income. Of course, don’t forget the money you’ll have to save up for a downpayment. When you have that all of these factors in the picture, you’ll have a more realistic approach to buying your first apartment in Austin.
Find an ideal mortgage plan
Check your credit score
Before looking for a mortgage plan that will suit your needs, you’ll need to check your credit history and score. If you were to find any errors, it’s for the best you take care of them at that very moment. Always remember: the higher the score, the better you’re mortgage offers will be.
Try to save up for a higher downpayment
If you have the opportunity try to save up for a higher downpayment. That will give you an advantage from the start. You’ll pay a lower price every month, and banks prefer larger down payments. That shouldn’t surprise anyone. The average downpayment is about 20% of the home price.
Choose the right kind of interest rate
You can choose between a fixed-rate mortgage or an adjustable-rate mortgage. What’s the difference? Well, choosing the first option means you’re going to pay the same monthly price for the duration of your loan. The second one means you can pay lower rates at the beginning, for example, and higher ones near the end of the load.
Find a good real estate agent
Your best bet is to find an experienced real estate agent. Add it to the calculation. An agent you can trust is the real deal. S/he will help you to find a perfect home in your price range. Although it can sometimes sound like a waste of money, hiring an agent will save you up some nerves. Austin is home to an experienced array of real estate agents. That’s a fantastic combination when we consider Austin’s own moving companies. Just take a good look at the guys from Heavenly Moving and Storage, top-notch service providers in the area. They’ll make sure everything goes the way you’ve imagined.
A few words before we go
Hopefully, this article will help you plan the budget for the house of your dreams in Austin. It’s a wonderful city and you’ll be glad to become its resident if you already aren’t one. Buying your first apartment in Austin is the best decision you’ve made so far. Just ask the local folks what they think of their town. You’ll see they’re very proud and hospitable.
That’s about it. Thank you for reading.