Buying a new home can be exciting as well as a little daunting since it’s a major decision of life for most. However, the important thing to remember for first time home buyers is to meet the challenge head-on by doing your share of homework and not jumping in with both feet. This will make the task less daunting and more exciting as it should normally be!
Here are some tips for the first time home-buyer to keep them on their guard while taking a decision.
Budget Matters
You first have to figure out whether you are buying as an investment or as a home. Get an idea also on how much you can afford to invest as a down payment or subsequent loan installments, if taking a loan. When calculating your budget, include all fees such as insurance premiums, homeowner insurance, property taxes, etc. Once you have a final figure, then you know which homes are within your reach.
Cost-saving Moves
Don’t get emotional when choosing a home. You need to separate your needs from your wants; this will narrow down your search for that dream home you have always wanted. Filter down your needs to the type of property, its location and the amenities that should come along with the house. Other cost-saving moves include buying in an area where there are many homes for sale; the local competition gets you better rates! Keep an eye out for properties undergoing foreclosure where you are sure to get your money’s worth.
Professional Experts
Take help from a legal expert who can guide you through the complicated details of title deeds, agreements, tax computations and home registration. Also, liaise with local experts who will have invaluable knowledge about the neighbourhood, the social amenities and any other issues of significance.
Assess Neighborhood
Choosing the right location helps in calculating the distance from work, schools, hospitals, supermarkets and other social amenities. Assess your new neighbourhood by visiting it at different times of the day, especially at weekends; this would let you know whether the neighbourhood is actually as beautiful as it looks on the outside.
Be credit-ready
Hold off any large credit purchases till after your loan approval. Keep all necessary documents related to your finances ready and if possible, obtain a pre-approved loan once you are ready to buy so as not to miss out on a good deal. Keep some extra funds in your account for the previous six months as some loan houses require evidence of seasoned funds.
And now, with all these tips under your belt, you are finally ready to go home-shopping for that perfect house you have always wanted!
