Home 5 Crucial Tips for Buying Your First Home
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September 4, 2019
5 Crucial Tips for Buying Your First Homeby Gabrielle van Welie
So, you want to buy a home but don’t know where to start?Are you worried you’ll get duped? Beginning to think that the house of your dreams just doesn’t exist or is just too expensive?Take a deep breath and rest assured that homebuying is stressful for everyone, not just you.Below, we go over some crucial tips for landing the home of your dreams that fits your budget and your style.
1. Have an outlined budgetHaving a budget is good for two reasons. One, the most obvious, is it helps you keep all your ducks in a row when it comes to how you spend your money.Imagine you want to use your bank loan for the down payment and refurbishing of an apartment. If you end up overspending with the down payment, you might end up living in an un-refurbished apartment for a long time before you save up again to do it.The second, less obvious reason budgeting is good is because it narrows down your search. Before you set a budget, any house could be the house. When you have a spending limit, only some houses could be it.Once you’ve named a maximum price, the way you think about the home purchase changes entirely. You begin to notice things you are willing to sacrifice and things you simply cannot live without. Perhaps the third bedroom isn’t necessary, but you can’t live without a terrace.
2. Decide on a mortgage loan before purchaseSpeaking of budgets, your spending limit will most likely be dictated by the type of mortgage loan you manage to secure. Before contacting sellers, be sure to have selected a mortgage loan provider that works for you.Visit various banks or building societies and be sure to look at their interest rates and fine print. Choose the provider that better fits your needs depending on how much you’ve got saved, your expected income, and whether you are paying off the loan on your own or with a partner.Afterwards, it’s time to get pre-approved for the loan. Once the loaner has certified it will be lending you the funds you need, you can approach a seller with a better sense of what you can and cannot afford.
3. Do your researchOne of the major mistakes first-time homebuyers make happens when they become infatuated with a house they see on sale. The saying “if it’s too good to be true, it probably isn’t,” was most likely coined right after a first-time homebuyer signed a bad deal.Luxury homes in prime real estate locations are not going to be sold for cheap, ever. And if they are, there is probably a huge issue lurking behind the scenes. Perhaps the building is about to collapse or the apartment is infested with rodents that nobody has been able to eradicate.A good deal needs to be fair and feasible for both parties involved. Nobody is out there trying to sell their house at a loss, which brings us to our next point.
4. Look for an agentThink of home-buying like going to trial. Would you show up without an attorney? You can be sure that home sellers are lawyered up, so to speak, so be sure to show up with someone who will look out for your interests and help you get the best deal possible.Agents are also knowledgeable about neighborhoods and market prices. They can help you narrow down which areas have better schools or are close to that golf course you really like. They know how to work within your budget and will advise you on when to settle for a price and when to bargain.Home-buying is tricky even for seasoned buyers. It is a big investment that can be either a blessing or a curse depending on the property you land. So, why risk such an important move when there are experts in the field ready to make your purchase a sure-fire win?
5. Find out about tax deductions and benefits for first-time home buyersMany governments around the world have programs put in place to help first-time home buyers. For the greater good of society, it is in government’s best interests that families have somewhere to live that they can afford.Check what options are available for you before making a purchase. Some governments help you secure interest-free loans. Others offer tax deductions for a set amount of years following a first-time home purchase.The important thing is knowing your options so you can add in that variable into your spending equation.So, there you have it. Five crucial tips for buying your first home. Ready for some house hunting? Check out our options here:
So, you want to buy a home but don’t know where to start?Are you worried you’ll get duped? Beginning to think that the house of your dreams just doesn’t exist or is just too expensive?Take a deep breath and rest assured that homebuying is stressful for everyone, not just you.Below, we go over some crucial tips for landing the home of your dreams that fits your budget and your style.
1. Have an outlined budgetHaving a budget is good for two reasons. One, the most obvious, is it helps you keep all your ducks in a row when it comes to how you spend your money.Imagine you want to use your bank loan for the down payment and refurbishing of an apartment. If you end up overspending with the down payment, you might end up living in an un-refurbished apartment for a long time before you save up again to do it.The second, less obvious reason budgeting is good is because it narrows down your search. Before you set a budget, any house could be the house. When you have a spending limit, only some houses could be it.Once you’ve named a maximum price, the way you think about the home purchase changes entirely. You begin to notice things you are willing to sacrifice and things you simply cannot live without. Perhaps the third bedroom isn’t necessary, but you can’t live without a terrace.
2. Decide on a mortgage loan before purchaseSpeaking of budgets, your spending limit will most likely be dictated by the type of mortgage loan you manage to secure. Before contacting sellers, be sure to have selected a mortgage loan provider that works for you.Visit various banks or building societies and be sure to look at their interest rates and fine print. Choose the provider that better fits your needs depending on how much you’ve got saved, your expected income, and whether you are paying off the loan on your own or with a partner.Afterwards, it’s time to get pre-approved for the loan. Once the loaner has certified it will be lending you the funds you need, you can approach a seller with a better sense of what you can and cannot afford.
3. Do your researchOne of the major mistakes first-time homebuyers make happens when they become infatuated with a house they see on sale. The saying “if it’s too good to be true, it probably isn’t,” was most likely coined right after a first-time homebuyer signed a bad deal.Luxury homes in prime real estate locations are not going to be sold for cheap, ever. And if they are, there is probably a huge issue lurking behind the scenes. Perhaps the building is about to collapse or the apartment is infested with rodents that nobody has been able to eradicate.A good deal needs to be fair and feasible for both parties involved. Nobody is out there trying to sell their house at a loss, which brings us to our next point.
4. Look for an agentThink of home-buying like going to trial. Would you show up without an attorney? You can be sure that home sellers are lawyered up, so to speak, so be sure to show up with someone who will look out for your interests and help you get the best deal possible.Agents are also knowledgeable about neighborhoods and market prices. They can help you narrow down which areas have better schools or are close to that golf course you really like. They know how to work within your budget and will advise you on when to settle for a price and when to bargain.Home-buying is tricky even for seasoned buyers. It is a big investment that can be either a blessing or a curse depending on the property you land. So, why risk such an important move when there are experts in the field ready to make your purchase a sure-fire win?
5. Find out about tax deductions and benefits for first-time home buyersMany governments around the world have programs put in place to help first-time home buyers. For the greater good of society, it is in government’s best interests that families have somewhere to live that they can afford.Check what options are available for you before making a purchase. Some governments help you secure interest-free loans. Others offer tax deductions for a set amount of years following a first-time home purchase.The important thing is knowing your options so you can add in that variable into your spending equation.So, there you have it. Five crucial tips for buying your first home. Ready for some house hunting? Check out our options here:
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I appreciate you for providing tips on buying my first home. Lately, my husband and I have been looking through luxury homes listing, and we thought about investing in one. With that considered, we shall then follow your advice to outline our budget so there will be no additional or unexpected expenses along the way. I also like what you said that this narrows down our home search.
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