Buying Your First Home? Read This First
Did you always dream about having a place you can call home? It’s a feeling, which you can only receive in a place owned by You. A study showed that close to 40% of house purchases in a year account for first-time homebuyers. Hence, if you are one of them, let’s look at the things you need to remember.
Do you want your own Place?
The first thing that you need to establish is the desire to buy a new house. Usually, people buy a house when they feel the need to settle down and start a family of their own. At other times, people want stability in their life with a secure future.
You will have to start looking for a Good Home Loan.
No matter which tangible asset you are buying, be it a car, home, or even durable electronics, a loan is a must as you cannot invest all your savings instantly. Also, loans help you to repay the lump sum amount at intervals and hence, lesser burden.
The best thing will be to go online and start looking at banks and interest rates. Set up appointments and meet the loan managers in person to understand which bank can provide the best loan options.
Be completely aware of the Payment terms and conditions.
When it comes to loan transactions, you need to be cautious about the hidden terms and conditions, the type of rate attached to the loan, the percentage of rate, etc. All of these things are actually important. Since it is your first time, it must be a daunting task for you.
You can choose a payment term between 20 to 30 years as the annual amount is usually lesser.
Do not get scared as there are primarily two kinds of mortgages:
- Adjustable Rate Mortgage: The rate of the mortgage changes as per market behavior and you may start on the lower bracket, but end up paying higher.
- Fixed Rate Mortgage: Here, there are no fluctuations and it is usually fixed. You can also negotiate if the markets are considerably lower than the agreed-upon rate.
For this, you may opt to go for certain professionals, who can help you as this is an important financial decision!
You need to ensure that down payment is ready.
Now that you have gotten a fair idea of the loan amount and the payment terms, it is time that you start arranging for the funds for the down payment as you will have to get it ready for the final documentation and acceptance of the loan amount.
If you are not ready with this, do not start getting your hopes high for a new home, right away.
You have to be realistic about your budget.
Before you decide on the neighborhood or the color of the curtains, you will have to look at the budget for your new home. If you do not decide on the budget, then you may like a house out of your range, and then end up being sad as the expectations were not matched.
Your financial capability must be the backbone for you to create an affordable budget for your dream home.
A real estate agent is a must!
You cannot look and buy a home on your own. You will need a real estate agent. However, there are a lot of real estate agents. So, the best thing will be to look for personal references amongst friends and find the best one, whose fee is convenient and they have access to good properties in the localities in your preferable locality.
Visit the properties you like and get it inspected.
Visual inspection is very important when you are going to buy your first dream home. However, no matter how trustworthy and honest the real-estate agent and the property owner seems, you should always get an independent inspector and get the property inspected properly.
The quality of your dream home is what you are shelling out your money for. Also, this inspection will give you an estimate of the amount of money you will need to make repairs and all.
Do not get impatient at Escrow!
Since you have finalized everything, do not lose out on your resolve at Escrow. It is usually important so that all the documentation is properly done and the payments are properly transferred or not. It may take a couple of days.
Now, what are you waiting for? Just keep these in mind and move into your first house, you can call home and decorate it just the way you like it!