Buying your first home is one of the most prominent moments in anyone’s life, and is most likely one of the largest purchases you’ll ever make. The process can be confusing for first time home buyers, due to the obstacles and hurdles that need to be overcome, and you’ll likely be anxious about making a costly mistake. Before getting your foot on the housing ladder, it would be wise to gain some basic understanding of the house buying process and the pointers to keep in mind to ensure you’re making the best decision for you.
Check out the tips below:
1. Evaluate what is affordable
Before you decide to buy a house, you need to closely evaluate your finances and determine whether you can comfortably afford to become a property owner. You need to be prepared for making the purchase of the home, and the constant expenses that need to be paid out every month.
Firstly, you’ll need sufficient savings to make the initial deposit and to cover your living expenses once you’ve moved into the property. Secondly, to be considered for a mortgage in principle, you’ll need to have a good credit history that proves you’re a reliable lender. If you’re keen to build your own home, you could even consider applying for private money loans to support you financially for the duration of the project.
2. Which type of home will suit your needs?
As there are a variety of homes on the market, you will need to determine which type of home will best suit your requirements. From apartments to townhouses, and detached properties to bungalows, having a clear idea of what you’re looking for, will help narrow down the search. Although many first-time homeowners decide to move on within the first few years of getting their foot on the ladder – evaluating your goals from the off, will enable you to make the best-informed decision.
3. Be aware of serious issues
As a first-time homebuyer, it’s easy to get swept up in the excitement of the property search and may cause you to overlook severe problems that may be present. What you may not be aware of, is that some sellers will try and cover up potential issues or fail to mention them to viewers, to prevent putting them off. With this in mind, always be vigilant and ask questions. Small issues such as broken door handles or ripped carpets, shouldn’t become a deal breaker as they can easily be replaced.
Some of the more worrying factors to look out for, include:
- Mold and damp
- Cracked/stained/discolored walls
- Bad plumbing
- Poor insulation
It may also be beneficial to quiz the seller on their relationship with neighbors. Although this won’t affect the property price, it can be eye-opening to gain some understanding of who you’ll be living next to and whether it could pose any problems. If in any doubt, you could introduce yourself to the neighborhood, to get a feel of what to expect.