So you have earned enough money to buy a house but the problem is you do not have any idea where to start. That’s perfectly fine. In fact, 90% of first time home buyers have experienced the same thing. And based from my personal experience, people tend to buy the house that fits their budget without further considering the countless factors when buying a house. It is crucial for first time home buyers to be sensitive with the different elements involve in the process.
Before buying a house, one must carefully design a course of action. Doing this will reduce the amount of stress, regrets and ultimately prevent bad decisions along the way. Remember that buying a house can be one of the major investments you will ever make so understanding what you want and how you want it will be the fundamental questions you need to answer before buying the property.
Now, let us break down useful tips and pointers for first time home buyers.
- List down your reasons and goals why you want to buy a home. Knowing your goals will help you identify the type of home suitable for your needs, budget, and mortgage. There are numerous options for home buyers when it comes to residential properties like a condo or a townhouse. Factors like the size, style, interior layout, neighbourhood, and location must be considered. From this point, you might get mystified because it seems that every option is ideal. This is where knowing your goals are important because it will aid you in deciding which type of home helps in reaching your goals.
- Next is to determine your own budget and the amount of mortgage you are capable of. The amount of mortgage that will be given will usually depend on the homebuyer’s income, job stability or existing debt.
- Get the best help in town. Once you got your goals and amount of mortgage ready, get a good real estate agent in your area or someone you know or was referred by a trusted source to help you in buying your first ever home. A real estate agent can help you in finding properties that might be suitable with your needs. They usually keep an updated list of available homes in the area which makes it easier for the home hunting process. As a homebuyer, you can also look for available lists in various resources such as the web and papers and have it checked with your real estate agent. They can also help you in the negotiating and buying processes such as making offers with the seller, getting loans and insurance, paperwork, and inspections.
- Calculate the total monthly housing cost including the taxes and insurance and closing costs. This will help you get a bigger picture on how much you will spend and see if it is viable.
- Choose the most secured loan available. First time home buyers are usually offered a wide variety of financing options by their own state.
- Hire your own professional inspector. The home you are eying to buy might appear faultless, don’t get too overconfident. Have it inspect carefully to ensure safety, security and overall quality.
When closing the deal, brace yourself and get ready for tons of paperwork. Have your real estate agent keep close by your side so they could help you understand and secure everything you are signing on.