Buying your first home will probably be one of the biggest investments you’ll ever make.
As it is your first home, you will have a lot of questions and lot of factors to consider, which can make you feel stressed and under a lot of pressure.
What to pay attention to?
What are the most important things to be aware of, so that you don’t end up spending far more than planned and with a home that will turn out to be the wrong decision?
Here are some helpful tips for the first-time home buyers:
1. Hire a real estate agent
This is the first thing to do – an agent will save you a lot of time by sending you potential houses to check out according to the parameters that you provide – no wasting time on the internet and through advertisements.
Also, agents are familiar with listings that aren’t on the market yet and are ready to preview houses for you.
2. Set your budget
You need to identify just how much money you earn on monthly basis. This means reviewing all your expenses (restaurant bills, shopping, food, etc.) without the rent.
When you calculate what you have left at the end of the month after paying all the bills, you will know how much you can spend on a mortgage and home expenses every month.
Don’t forget to include the expenses related to the new home, such as taxes and utility bills.
3. Do a home inspection
Sometimes a home inspection is performed at the demand of the homeowner before you even get the chance to see it, but sometimes it isn’t. In that case, it is absolutely necessary to have your home inspection so that you don’t end up with a home with poor foundation or a faulty electrical system.
If the inspection detects certain problems, it isn’t the seller’s obligation to deal with them, but it is possible you will be able to lower the price of the real estate, in case the repairs will be yours to make and they won’t be too expensive.
4. Pay attention to what is really important
Don’t get your hopes up when it comes to homes you will get to enter.
Most of the time, you will have unrealistic expectations about how homes for sale should look like. You may be disappointed with awful wallpaper, the color of the living room or the kitchen cupboards, but the truth is – those are things that can be easily changed.
Have an open mind about those things and focus on what really matters when buying a new home – the layout of the real estate, its size and the plumbing and heating system.
5. Know your mortgage options
You will probably have to get a mortgage, but this is where you need to explore your options.
Maybe you are planning to stay in that home for the rest of your life or maybe you are planning to move to a bigger one when you get more children. It might influence the length of the mortgage you prefer.
Consider visiting a couple of banks to get different terms and rates – the difference can be substantial. You will be paying the mortgage for a considerable number of years, so make sure you choose the best deal. Perhaps consult with your personal accountant if it makes sense!
6. Understand how the process of offer works
The first thing to know when you are ready to make an offer to the seller is that several factors will affect the offer, including: comparing the asked price with the prices of the real estate in the same area; knowledge of the time that the real estate has been on the market; the number of comparable real estate in the neighborhood.
Negotiation is due to happen, so be prepared to go a bit higher than your original offer. Your offer should also include the home inspection, both property and financial one so that you don’t get into financial problems once the house has already been bought.
Buying a home for the first time is a big deal and somewhat risky, but if you do your homework and do the research thoroughly, asking the right people for help, it can be a process that will finish with you having a big smile on your face in a brand new home.