Purchasing a home is a significant event that comes first in many people’s lifetime wish list and oftentimes their list of financial fears too. There are certain challenges that make it harder for first time home buyers to enter into the property market.
Here are some invaluable tips you can keep in mind as you begin your home search.
- How much money do you have? Make sure that the house you are looking for is within your price range. It will be a waste of time going through open houses only to realize it is way over your budget. Watch your savings and calculate how long it will take for you to come up with a down payment. If you are applying for a mortgage loan, be sure to take the true cost of making those monthly principal, interest, taxes and insurance payments each month and apply them to your take-home pay.
- Ask yourself what you need in a house. Based on your budget, make a list of what you would like to have in your home. Look for houses within your price range and make a list based on this. If you are looking for a fully renovated kitchen but none is available within your budget, you may need to lower your standards and consider to just do an upgrade later.
- See if you qualify for a home loan. Look for lenders and make comparison on different loans they offer. Provide them with your credit details, income and assets to see how much loan can you get. Typically, pre-approvals are good for two to three months so make sure to find a home within that period of time otherwise you may need to re-qualify from the lenders.
- Request for a home inspection. This will save you tons of money in the long run. Ask for referrals from your friends and relatives. Never hesitate to ask especially about the process, their expertise and how long it normally takes.
- Be aware of the closing costs. These are the expenses, over and above the cost of the property. It includes taxes, insurance and other maintenance issues that comes with the process of owning a home. It is wise to save for such unexpected expenses.
- Know the neighborhood. Check to see where the best schools are if you have kids, what is the crime rate like in the area, its convenience to places being within walking distance. These are all importance factors in choosing the right neighborhoods as it will have a great impact on your quality of living.
Research thoroughly and don’t let anyone pressure you into buying a home you’re not completely sure of. Make sure it’s somewhere you want to live for the long-term.