First-time home buyers face many challenging questions and tedious processes when searching for their dream house. From how to secure a home loan to home inspection tips, most consumers need quality advice from experts in the real estate game.
Informed decisions and seasoned guidance make your job easier. Getting the basics down frees you up to immerse yourself in the fun part: shopping for your new abode!
Continue reading for a high-level view of the steps you’ll likely encounter as you shop for your family’s first home.
Build Your Team
Since this is your first home, take guidance from those with the knowledge and skills to help you complete a deal that works in your favour. Ask friends and family to recommend real estate agents with proven track records of success – experience matters. Find a representative who communicates well and has local knowledge of the neighbourhoods you’re interested in.
You’ll need a mortgage broker to help secure financing for your new home. Choose one who can clearly explain the different loan options available. To strengthen your buying position, your broker will help get you pre-approved for financing that aligns with your long-term goals.
Monitor interest rates and discuss the pros and cons of variable and fixed-rate home loans with your broker. Finally, retain a real estate attorney who will help you review contracts, conduct title searches, and close the deal with all parties present during the ownership transition signing.
Assess Your Budget
Discuss your current financial standing with your team of experts. Categorise your monthly income and review your spending habits. Getting a monthly savings plan down on paper helps you prepare for your down payment and closing costs.
Your credit score affects your mortgage eligibility and interest rate qualifications. Obtain a copy of your credit report and review any discrepancies. Improve your score by paying outstanding balances and holding off on new credit applications if needed.
Use an online mortgage calculator to review different loan options and discuss the results with your broker and attorney. Evaluate programs offering down-payment assistance for first-time buyers.
Location and Lifestyle
To find the house of your dreams, choosing a location that balances your living requirements with preserving your home’s future value is essential. Begin an honest discussion with your family about your needs and expectations.
Would a house or condominium make the most sense? Evaluate how much space you’ll need and if you want to handle the maintenance yourself, as well as taking into consideration what you can afford.
Consider your family’s current and future size when deciding on the number of bedrooms and bathrooms required. Don’t forget storage requirements for everyone’s belongings and parking for your family’s vehicles.
Identify which home features you’d like to have right now versus the ones that are nice but not essential. If you are adept at handiwork, consider homes needing minor upgrades. This allows you to personalise the home as you complete the projects, and save a bit on the upfront cost.
That said, prioritise properties already pre-wired for the latest internet and satellite connectivity standards, saving you the expense and preserving resale value.
When researching neighbourhoods, evaluate the crime statistics for each area. Then consider the amenities offered. Look at the proximity to shopping centres, schools, and healthcare campuses. Does the area offer good public transportation options? Are there quality schools and recreation options nearby? What does the future hold for the neighbourhood?
Research the local zoning regulations and economic indicators. Does the area appear poised for job growth? Are there any infrastructure upgrades or new housing developments that may increase property values? Mark those areas for follow-up research as they may be good candidates for investment.
Well-planned developments help to ensure your investment doesn’t lose intrinsic value over the long term. Asking the right questions now, before you buy, allows you to make an informed decision to meet your family’s immediate needs. It also positions you for a profitable real-estate investment long-term.
Home Inspection
Before closing on the deal, be sure to have a thorough inspection of the home completed. You’ll get a clear picture of future expenses and avoid nasty surprises. A qualified inspector will ensure the foundation, roof, and walls have structural integrity.
As you tour homes for sale, look for the following potential red flags. Wall cracks may be signs of foundation problems. Water stains and mould alert you to moisture-induced problems from roof leaks and plumbing malfunctions. Be sure the inspector tests the electrical wiring to determine if it meets local safety code specifications.
After completing the inspection, if you have doubts about the home’s condition or your ability to rectify the problems, simply move on. Don’t become emotionally attached to a property which will likely cost you thousands in repair costs. There are plenty more homes in the housing market ocean!
You Can Do This!
Finding your first home requires honest discussion with yourself and those representing you. Be patient, identify your requirements, research, and stay within your budget. Find the property best suited to your current living arrangements and most likely to appreciate. Before you know it, you’ll be settled into your first home.
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