Buying a Home First Time? Here Are 10 Essential Tips to Keep in Mind
If you are going to buy a home for the first time, chances are there that you may underestimate the work involved and the efforts required. Though you may be well aware of the process, however, being new, you may ignore some important things. Before you find yourself burdened with the unexpected responsibilities of the purchase process, let’s tell you the important facts you must consider. So, here are the tips to help you make a smart purchase and execute the process seamlessly.
1. Be pre-qualified for the mortgage
Before you start looking for the home, you should get yourself pre-qualified for the mortgage. The first thing that is considered by most of the sellers is whether the buyer is having enough money for making the purchase. It would be good if you can arrange cash and if not, then you must get qualified for the mortgage.
2. Think long-term
Whether you are planning to stay in the new house for a year or for your entire life, you must think long term in both the cases. In the case, you have the plans for shifting from there after one or two years, you must focus on the community and location that whether the property would be in demand at that time or not. And in the case you have the plans to stay there for longer, you must ensure that the house is up to your expectations.
3. Finalize the area where you want to buy a house
Community and area of the house matter a lot. It not only affects the value of the house but also decides whether the demand for the property would increase in the future or not. For an instance, if you are buying a house in the area that is loading up with the residential buildings, great chances are there that the value of the house would increase in the upcoming years.
4. Enlist your preferences
Don’t let your emotions guide you while making decisions; instead, make a checklist of the things you want in your house. Divide them according to the must-haves and nice-to-have. There may be the cases when you like a house but it does not have what you are looking for. In such a case, you must avoid your emotions.
5. Estimate the total cost
Be realistic while making a cost estimation for your house. It’s normal that the costs would increase than your planned budget. So, focus on every minute thing while estimating the total cost of the house purchasing process. Some of the main costs involved are the cost of the property, real estate agent fee, paperwork cost and more. You can also seek the help of professionals for this.
6. Start looking for the houses
Once you have done the pre-qualification and cost estimation, you can finally start looking for the houses in the locality you want. Chances are there that you may need to wait for getting a good offer or you may get a number of offers at once. In both the cases, you should not buy the first house you like; instead, you should look and inspect a few properties and then choose a one.
7. Compare and select
Make a list of the properties you liked and you can think of purchasing. Then, compare them on the basis of the facilities, locations, condition, price and more. A common mistake that most of the first-time home buyers make is comparing the prices only, but that’s wrong because prices vary as per the condition of the house and the facilities it provides.
8. Get the house inspected
Once you have selected a property, you must make sure that it is what it looks like i.e. there should be no hidden defects in it. And for that, you can hire a home inspection agency for the thorough inspection of the house. It will let you know about the defects and the repair/replacement needs for the different types of equipment in the house.
9. Consider the monthly costs
After you finalize a house for the purchase, you must consider the amount of your monthly payment. It would let you let know whether it fits your budget or not. Having this estimation is much crucial because in the case you miss the payments, your house may be at the risk of foreclosure.
10. Consult an experienced real estate agent
The house purchasing process involves a number of things like mortgage qualification, negotiating on the deal, finalizing the contract and more. Paperwork is required for all these and also, there are some considerations that you may not be aware of. So, it would always be better to consult an experienced and reliable real estate agent who can help you with it.
However, it’s not only at the end of the process that you need to consult an experienced real estate agent, you can also seek his help from the beginning of the process. In that case, he would not only help you to make a purchase the right way but would also guide you throughout the entire process to find and select a right house.