Buying your first home can be an exciting experience. Once you have your funds in place, you are simply ready to go! You have been saving and planning and now it is time to put pen to paper and seal the deal. But are you rushing into things? Buying your own property can be seen as a grown-up thing to do, can’t it!
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But, before you take that next step and commit a long period of your life to make the required repayments and being a homeowner, what are some important things you should consider? Let’s have a look at some great tips to keep in mind before buying your first home.
Is This What You Really Want?
It is never too late to stop. It is better to end the process before committing to something that isn’t right for you. You need to make sure you are buying a home for all the right reasons. And not because you think you should be!
Buying a home should be a positive experience, if not nerve wracking and stressful. It should be something you want and changing your mind is always allowed. Even if you have a mortgage in place. It is a big commitment and a long one too, so it is imperative that you know exactly what you are letting yourself in for before signing on the dotted line so to speak!
So consider your options carefully before it is too late.
Money, Money, Money.
Whether you have your mortgage already arranged or you are still in the process of working through your finances and saving for the down payment. Your income and expenditures should always be something you are explicitly aware of. With the average mortgage payment over $1,000 a month, it is essential that you know you can make the payments on time and consistently alongside your other financial commitments.
Don’t forget about closing fees. These are usually around 3-4% of your purchase price. You will need to pay for the following; appraisal, home inspection, credit report, attorney and homeowner’s insurance. So know where and when these need to be paid and where the funds are coming from along with any other associated costs. No one likes a nasty surprise, especially expensive ones!
Owning your home means that any repairs need to be taken care of yourself, so being able to afford to repair or replace things that go wrong is essential. Getting replacement windows can be costly so having savings or funds available to pay for these needs to be something you plan for in the future.
Where Are You Buying?
A low asking price or a house needing little to no repairs or renovations can be extremely attractive. This is great if you know the area and know what to expect. Buying a house in an up and coming area sounds great on paper, but is it really? And when are projected plans likely to completed by?
You should also be thinking long term too. It may be a great house for now, but if this is going to be somewhere you plan to live in for a while and raise a family in. You want to make sure the area has good schools and transport links as well as potential to grow with you. This could mean you may have to compromise and buy something you may not necessarily be looking for right now.
Talk to the neighbours, walk around and make sure to check out the local area before you decide to put an offer in.
Read The Small Print.
This isn’t an app or a website you are pretending you have read the t&c on. It pays to know exactly what you are getting into upfront. So read everything and make sure you understand it all. If you aren’t sure what anything means in the paperwork ask someone to clarify or look at getting help from a professional in this area.
Whether it is your mortgage documents or something in a survey of the house. When it comes to this type of investment, knowledge is key. You want to know where you stand at all times and what your obligations and legal requirements are at every stage. Especially when payments for services are being discussed.
As with anything in life, it is always good to stop and think about what you are about to do. Making sure you are 100% sure before you set foot on the property ladder can help you be certain you are making the right decision for your future