Buying and owning your first home property can be a huge leap on your financial aspect in life. It can be a thrilling experience and comes with many obligations. It’s quite natural to feel anxious when looking for a home, especially if it is your first property. However, it can be rewarding in the end if you apply the right process to do it.
It may be stressful at first and time-consuming experience. But there are helpful pointers that will make this real estate and financial journey less stressful:
Make a self-assessment
Even if you decide to buy a house and you saved up already, you still need to make an assessment if you really can handle such life and financial responsibility. You need to ask yourself the following questions to know if you’re ready or not for the new chapter of your life:
• Are you ready to buy your first home?
• What is you allotted budget?
• Do you have enough savings to pay for your first real estate property?
• Can you afford to avail a home loan?
• Where is the best place you want to buy the property?
Answering these questions will help you finding out whether buying a home is ideal for you.
Check your finances
One of your deciding factors should be your monthly costs then compare it to your rental expenses. Ask yourself if you can pay the monthly amortizations for the property on a long period of time. Even if real estate companies offer discounts and early move-in, don’t give in without your personal financial assessment. You may not be able to pay your home in the long run if you bought it out of impulse. Moreover, consider other expenses aside from mortgage or home loan and this includes homeowner’s insurance and mortgage protection insurance.
Hire a professional and reliable real estate agent
Hiring a real estate agent is beneficial especially if you’re new with real property purchase. A real estate agent will look out for your best interest, helping you how much money you can save. They also advise you which property is suitable for you or which one is better for your lifestyle. When hiring a real estate agent, check their accreditation from their company, references from past clients, and a real estate broker license.
Get a pre-approved home loan
Most of the real estate companies require buyer to take out a bond to purchase their first home. When you apply for pre-approval, it puts you in a much stronger home loan position to buy. Doing this shows that you are a serious buyer and have the required finances to purchase the property. It also help you to check home properties based on your pre-approval amount or less.
Explore the available down mortgage options for you
In owning your first home property, there are so many mortgage options to choose from, each with its own pros and cons. If you’re having hard time with down payment, you can check out some loan options. Your down payment may also affect your monthly mortgage payment and interest rate.
For mortgage payment, you can choose for a 30-year fixed mortgage to pay the smallest amount. If you have more money to pay, you can opt for a 20-year or 15-year fixed loan. Your real estate agent can help you with this, choosing which fixed mortgage is a better fit for you.
Compare various housing types, apartments and houses in the area you want to settle down
It is recommended that first time home buyers should look at comparable homes in the area of their choosing. They can use apps such as Zillow and Trulia to perform the search and comparison. You have the freedom to choose what type of home you want to live. There are condos, apartment, house and lot, kit homes, and more. If you’re eyeing a particular apartment building, try to make a research about this certain property. Inform yourself and keep in touch with your real estate agent with any changes in your search.
Find out the home features you need
You also need to decide on the home features you want. These features should meet your lifestyle needs and wants. Carefully list down all the things you would regard as essential and non-negotiable. Decide how many bedrooms and bathrooms do you need. Determine if you need a home office or a parking space. Ask yourself if you want to maintain a garden or not. If you have the list of the things you want in a home, it will be easier for you and your real estate agent to choose the ideal home for you.
