Your dad belongs to the good old time. Life was different back then. People were less complicated and things were much simple. So, it is quite expected that you don't pay heed to what your dad says most of the times.
It is true that time has changed - for the better or worse. However, some of your dad's advice still rings true in this modern world, specially his home buying advice. So, if you're in the market for buying a new home, then listen to your dad's advice diligently.
Making proper down payments, saving money in the checking accounts, conducting research on the market can help you grab a lucrative deal. Make your dad happy and proud by buying a fantastic home without wasting money. Follow his advice to make the best decision.
Act according to your dad's advice while shopping for a home
Your dad is your friend, philosopher and guide. He has made you the person you are now. He has given you everything in life. Don't question his judgment just because he is not young anymore. Give value to his experience and act as per his advice while buying a home. Here are some advice which you should pay heed to while shopping for your dream house.
1. Purchase house according to the strength of your wallet: The lending standards were not rigid in the past few years. You could borrow a gigantic loan and purchase a mansion. However, as your dad has told you billion times, this is simply a fatal mistake.
It is better to take out a home loan which is twice or thrice your salary. You should not buy a home which you can't afford to maintain. Remember, if you can't payback the loan, then your lender will happily snatch away your beloved abode. You'll lose your sleep, happiness and life. Take out a home loan which you can pay off comfortably.
2. Look at the loan offers before striking a deal: Your dad is very careful about money matters. He doesn't accept the first loan offer. He knows that there may be a better deal and decides to wait for it. He compares the loan offers before bargaining the price of the house.
Shop around for the best loan offer in the market. See who is offering the lucrative deal. Contact various types of lenders - mortgage brokers, local and national mortgage lenders, etc. Shop around till you get the best deal.
3. Purchase the least costly house in a good area: You think that your dad is joking when he asks you to purchase a least expensive house. You have saved money all the years to live in a good house and now your dad is asking you to buy the least expensive house. You just can't accept this.
Your dad is right. It may seem a bit odd to buy the least expensive house in reality. However, if you analyze the matter little too deeply, then you'll realize that your dad is correct. The value of the most expensive house doesn't appreciate much in the long run. However, the value of an inexpensive or moderately priced house increases quickly with time. If you can do some renovation in your house, then its value will shoot up. So, your best bet will be to purchase the least costly house in a good locality.
Finally, don't exhaust all your savings to borrow a loan. Keep aside a certain amount for emergency situation. Don't use all your savings to buy a home. If a bank is offering you a loan worth $100,000, then accept 20% less. This will help you live comfortably in your house and meet financial emergencies gracefully.