Tips You Need To Know When Buying Your First Home
With increasing house prices, it is extremely important for first time buyers to get a foot on the first step of the property ladder. With the help of an experienced real estate professional, you can begin searching for you perfect first home and ensure that the experience itself is more exciting and less stressful. Here are 5 tips to get you started. 1. Know how much you can afford. Banks and other lenders have specific formulas to determine how much you can afford to borrow. Before going to see a professional, calculate the numbers yourself to make sure that you feel confident that you can afford the payments.
Don’t forget to factor in other expenses, savings and the cost of life. Just because the bank approves you for a mortgage doesn’t mean you can actually afford it after the factors have been weighed in. Don’t overbuy on your first home. You will end up better off with smaller payments on a starter home that you way you can move up later on. 2. What is on your wish list? Before you seriously start looking for your new home, you need to determine what your needs and wants are.
Create lists of what you are willing to compromise on, and things you absolutely need to have. This way, you can narrow the search for your home down to the properties that fit your needs. 3. Don’t forget about closing costs. The beauty of hiring a real estate professional is that they will keep you informed on the necessary closing costs of your home. 4. Get pre-approved! We cannot stress this one enough. After you have figured out all of the above, the next step is to contact a bank or mortgage broker in order to be pre-approved for a mortgage. This gives you one step in the door over the people who may be interested in the same property as you. Which is a vital thing to have in today’s market. The seller will know you are serious and gives you the confidence to negotiate the purchase of the home. 5.
Buy with your head, not your heart. The golden rule for making any large purchase in life. Think logically and realistically with the biggest purchase of your life. Letting your emotions overrule common sense may result in your paying much more for your home either at the point of sale or over the next few years. And sometimes, you can’t make that back.
As previously stated, hiring a real estate professional is first and foremost the most important step to take. Not only will they help you with the above tips, the will also make sure that your wants and needs are met to the best of their ability. Having a third party helping you with this can ensure that you won’t make any mistakes and that you will find the perfect home.