Buying a home is a huge financial step that requires probably several years of planning. It is crucial to take plenty of time to prepare yourself in every aspect when purchasing your first home in order for it to be a positive experience.
Is it time to buy your first home?
The following ideas will help you navigate through the house buying process:
How much can you really afford to spend in a home? Here is a tip; never let your taxes, mortgage and insurance exceed 30% of your income. Do not spend too much on your mortgage as it will limit your ability to save for your retirement, not forgetting your daily obligations.
Keep your house payments low if you have other loans such as credit card and student loans.
Consulting professionals in property
A real estate professional is an ideal choice if you are considering to buy a home, especially if you have never made such a purchase. One of the most crucial tips for those looking forward to buying a property is to consult a financial or investment expert who is competent in their field of work.
A property investment professional will save you lots of time and also help you avoid mistakes and risks while selecting and purchasing a home.
How to choose a good property investment professional? Here are some tips to help you get an expert who meets your home requirements:
- Get a property investment expert who is licensed in the region that they are practising
- A good property investment professional should have an exceptional knowledge about the property investment market in your region.
- Your comfort level is important. Get a professional who understands what you want and is willing to put your needs first.
Shopping for a loan
Take your time to shop around for a loan that suits your needs. You will need to get pre-approval for a loan before you go shopping for a house.
With a loan pre-approval, you get to know what you can afford and thus look within your range. You should weigh at least three loan options before deciding which one to take.
Property investment experts have close relationships with various companies that could give you a loan with good rates; emphasising the need to work with real estate experts.
Mortgage down payment
It is common to come across lenders demanding a down payment of 20% of the total mortgage cost. This makes it important to start saving early.
Down payments are hefty regardless of how little they are since you still have to pay for the mortgage insurance. Setting aside work bonuses and tax refunds are some of the effective tips that will help you save for your down payment.
There are various mortgage options out there. Weigh all the available options and settle for the one that sits well with your finances. Remember, a higher down payment means lower monthly payments for a mortgage.
A thorough home inspection is an essential process when purchasing a home. It will cost you to pay for a home inspection. However, the process is necessary since the inspector will help you find out any hidden house problems that you could not have found out on your own.
Through a home inspection, you will learn about issues that might make you lose interest in buying a particular property. An inspection will save you from repairs due to issues such as mould problems, a bad roof or even foundation problems.
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