Buying a home is a venture that should never be taken lightly. Purchasing a house or apartment requires a huge investment. If you want to be sure your new property is worth every penny you spend, you have to be ready to put in some hard work, too.
If you are buying a home for the first time, you can avoid making time-consuming and costly mistakes by following these tips shared by leading housing and property financing consultants:
Determine how much you can afford to spend when Buying a Home
Consider your savings and financing options to find out how much you can spend on your new property. A bank representative can give you all the information you need. You can also use an online mortgage calculator to help you determine this.
Once you get the figure, try to look for properties that do not go beyond 35 – 45 percent of your gross income (including down payment and insurance).
You should always stick to this budget whenever you go home shopping.
Create a list of what your dream home should have
Before you start shopping, consider your lifestyle, values, and all the things you want your new home to have. These items should include the location, size of the house or apartment, amenities, outdoor space, etc.
By using this list, you will be able to narrow down your choices better. This list will also help guide your realtor.
Work with a realtor
Nothing can be more helpful for first-time home buyers than working with a seasoned realtor. In case you already know where you want to buy your new home, you can ask for referrals or go online to find ones that are highly recommend.
By working with a realtor that has knowledge of the area, you will have a quicker time finding your dream home.
“A good realtor will also have contacts for loan officers and real estate attorneys as well.”
Your realtor can also offer tips during the actual transaction process such as giving you a copy of a mortgage pre-approval letter which you can use to show sellers that you’re a serious buyer.
Do some comparison shopping
To have a good idea of going rates, look at comparable homes in the area you want to live in and check out the prices of other properties.
Find out the prices of homes that have been recently sold or are still on the market.
By doing so, you will know what your starting offer should be once you’re ready to bid on your dream home.
Inspect the homes you are interested in.
Before making a bid or proposal, make sure you run a thorough home inspection first. Be on the lookout for hidden problems such as poor plumbing, roof leakage, floor squeaks, etc.
Having these faults repaired will cost you extra money. If you come across such issues, ask the owner to fix them or consider moving on to another property.
Know your financing options.
Lastly, look at the different mortgage companies and offers. Choose a company that provides loans with the lowest interest rates and have flexible payment options.
Once you’re ready to buy a particular home, make sure you read the contract carefully.
You can confer with your realtor if all the terms and conditions are acceptable. Make sure you understand and agree to everything before signing the contract.