If you are starting to look for your very first home to buy, you’re probably feeling a mix of emotions. From overwhelming fear about how you’re going to make homeownership happen to excitement at the prospect of having somewhere to truly call your own for the first time, the journey to purchasing a house can be a winding road, no matter how prepared you think you are.
Loan commitment
A mortgage is a big deal. When you sign on the dotted line, you are committing to pay back the purchase price of your house over 15-30 years. It is wise to ask yourself if you plan to stay in the exact location for at least five years, have a stable income, and have an emergency fund that will cover at least three months’ worth of bills.
Get pre-approved
Getting pre-approved for a mortgage is brilliant for several reasons. It will help you know precisely how much house you can afford, it will make your offer stronger when you are ready to buy a particular property, and it will give you peace of mind that you won’t be scrambling for financing at the last minute.
Get your down payment together
A down payment is a necessity when it comes to buying a house. Most lenders recommend a certain percentage in donw payment and applicants must meet various qualifications.
Remember closing costs exist
Make sure you talk to your real estate agent about how much money you should set aside for closing costs, covering legal fees, pest inspection fees, home inspection fees, appraisal fees, escrow fees, and title insurance costs.
Know what you need
When you are touring various houses for sale in your area, it can be tough not to fall in love with all of them simply because you’re so excited. To help you narrow down the options, create a list of your needs and wants in a house. A pool, for example, should probably be in the “Want” column, while three bedrooms for a growing family is likely a “Need”.
Research your realtor
Before hiring a local realtor, it is wise to do your research. The more you learn about different real estate agents’ specialties, the easier it will be to choose someone perfect for your situation. If, for example, you’re looking for a family home in the suburbs, you probably shouldn’t hire an agent who specializes in downtown lofts.
Don’t go over budget
There is nothing worse than waking up one morning a year or two from now and finding yourself “house poor.” To ensure this doesn’t happen, stick to your budget and don’t overspend. You will be better off for it in the long run.
Get an inspection
When you fall in love with a house, it is easy to want to move in right then and there. However, getting a home inspection is a crucial component of the home buying process. This way, you will know any issues before you move in, and, in the case of severe problems like structural damage, you can decide if you still want the property.
Keep a physical paper trail
While digital technology is impressive, it is still wise to keep physical copies of any paperwork related to your home search. This way, you don’t have to worry about a critical document accidentally getting deleted or lost because you’ll have a physical backup at the ready.
Never stop learning
There is no one-size-fits-all guide to buying a house for the first or fifth time! Everyone’s journey is different, so remember to enjoy the ride and never stop learning about the real estate market. You might find a new passion!
The journey to purchasing a house can be a winding road, no matter how prepared you think you are. Picture:WWW.REALESTATE.COM.AU
It is wise to ask yourself if you plan to stay in the exact location for at least five years, have a stable income, and have an emergency fund that will cover at least three months’ worth of bills.
Picture: WWW.ACORNS.COM
