You probably know that buying a home is likely to be the biggest purchase you will ever make. Sure, you may upscale over the years as your income grows and you need space for a family, but that first-time buy can feel like a leap into the unknown.
It doesn’t have to be like that though. It may be nerve-wracking as you move through the buying process, but you can do a lot to make things easier for yourself. The main thing to do is research what has to be done, take advice from friends or acquaintances who have done this before, and listen to impartial professional guidance.
Here are a few tips to help you on the way to your ideal home purchase.
In the end, it’s all about the money. Sure, the legal side of things is extremely important as well, but without the money and the right mortgage, you’re stuck. So, prepare for your future and save as much as you can for putting a down payment on the table when you’re looking for a mortgage.
It all depends on the lender, and that’s why you need to look into your borrowing options right from the start. Some may want you to put down up to 20% of the price agreed, but you could find a program that will let you, as a first-time buyer, put down a much lower percentage.
Remember that the more you can put down at the beginning the better, because it means that the repayment amounts you’ll be making will be lower. You should also look for a lender offering a low-interest rate, but you should also be aware that a higher rate might kick in after an introductory period ends.
The advice is: always read the small print! Don’t enter into a binding agreement without fully understanding what you are committing yourself to. It’s easy to get carried away with the excitement of your first home purchase but put your business head on and ensure that you are comfortable with what your financial circumstances are going to be in the years ahead.
Know what you can realistically afford
Use an online calculator so you know what you can sensibly afford. Again, it’s easy to get carried away, but you need to know how much you can safely spend. Try to avoid the mindset of “it’ll all work out fine” because if it doesn’t then you could be in real danger of losing your home. Be practical and realistic and draw up a budget for all your income and expenditure. Factor this into your repayment schedule, and you will have put yourself in control.
You may be desperate to get the particular property you’ve set your heart on but step back a moment and look carefully at your options. Is it relatively close to your work? Are there stores and malls at a convenient distance? If you already have or plan to have a family, where are the nearest schools? Take the time to explore your options and then make a considered judgment as to whether it is right for you and your circumstances.
After all, there are plenty more choices out there.
Consider home warranty options
When you’ve made your decision and are going ahead with your purchase, you should consider what insurance you may need for the future. It’s pretty much essential to insure your home, both the building and the contents. As with everything in life you never know what’s going to happen so suitable insurance is a way of bringing peace of mind just in case something does go wrong.
You should always explore a range of insurance options, and once again it’s essential to read the small print, so you know exactly what you’re buying and what level of protection you will have. You can consider home warranty coverage, an insurance that can give you many possibilities for cover, but when it comes down to a specific, you should always check to see if it’s covered. It could be machine breakdown, accidental damage, heating or air con problems, so make sure you know and understand what a home warranty offers you.
Keep your options open
Nothing’s done until you’ve signed the papers so keep all your options open until you find everything works for you. Examine the financial side, look at the neighborhood, find out about the condition of your proposed home and how much you might have to spend to get it to where you want it to be.
Above all, be happy with your final choice and make your first home the place you genuinely want to be. Happy moving and enjoy your first home, you deserve it!