Owning your own house is the ultimate dream. And we don’t just mean rent a house, but like, actually owning a house. For most of us middle-class earners, owning a house is the dream. It gives you that sense of security, and satisfaction knowing that you finally reached it. Here are tips for buying a house
But as it is with all of our dreams, goals like these take time and require an immense amount of effort to achieve. The road is daunting and full of twists and turns that may or may not take you down the right path.
For this reason, we’ve put together a list of tips every first-time home-buyer should know.
6 Tips for Buying a House: First-timer’s Only
For the first time homebuyer, it’s very tempting to settle with the first house you find that falls within your wanted price range. All of this without giving the purchase much thought. And to make matters even more challenging, there are a plethora of taxes and fees that need to be settled and sorted out.
It’s almost enough to make the first-time homebuyer feel confused, hesitant, and nervous.
But just like any other major purchase, it needs meticulous research, plenty of help, and unending patience.
#1 Pinpoint your needs
The first question to ask is: what are you looking for in a home? Or the more appropriate question would be: what sort of home fits the lifestyle you live in?
There are lots of houses and apartments available out there, and picking the right one for you is perhaps one of the biggest decisions you need to make. Think about whether you’re looking to live in a single-family home with a yard, or perhaps a condominium? Or maybe a rancher would be the more proper choice?
Think of the overall utility you desire. Do you require a house with four bedrooms and an equal number of bathrooms? Do you need a separate family room for children? Does your family require a garage?
List these features and more according to the order of importance.
#2 Do research on the market
After identifying the type of property you want and need, it’s time to do some research on the market and see what’s available out there.
Don’t settle for the first one that you come across. This is your chance to do thorough research about the area or location that you have in mind. Does this house or land area have good transportation connections? Are you close to amenities like hospitals, schools, banks, and other commercial areas?
And more importantly, does the particular city or municipality have good infrastructure to protect your houses from flood and other natural calamities?
#3 Settle on a budget
You need to settle on a budget and stick to it. This requires taking a long hard look at your finances.
Think about the price ranges that you can afford, and how much cash you actually have available in your cash deposit at the moment. This can enable you to determine what type of property you should be able to afford.
As a general rule of thumb, prepare at least 20% of the purchase to price in order to qualify for an 80% loan-to-value ratio loan. Plus, you can also get an additional 5% of the property’s purchase price to take care of fees plus other buying costs.
#4 Consult with the professionals
Don’t hesitate to approach real estate professionals like WA Building Company. These are the people who can and definitely will help you make that successful purchase. An experienced real estate agent can help you locate several homes that would fit your needs. They can also help you choose the correct home, in addition to negotiating fair terms and conditions of purchase.
As a first-time buyer, some are probably nervous. For this reason, relying on professional advice can ease some of that tension. Tell them what you want honestly, and let them help you.
#5 Know your financing options
There are times when the ideal option for financing your home is through a bank. So make sure that you have all the necessary documents with you. Documents like payslips, tax returns, and employment certificates.
Be aware of a mortgage loan’s complexity. Seek the help of a mortgage broker, if you must as not all the loans are uniformly created.
#6 Save a lot
And finally, the process of purchasing your very first home doesn’t just stop when you move in. Apart from the mortgage that you need to pay every month, you have other expenses to take care of. Repairs, association fees, insurance, etc.
The general rule of thumb is to not spend more than 30% of your monthly pay when you’re paying off a mortgage loan.
Anything higher and you’ll find it difficult to cope with your expenses.