It’s not a secret that buying home is a very daunting and demanding task. You will be deciding whether to take the first house you find in your price range or continue renting. However, having your own home gives you enough liberty to do whatever you want without disturbing anyone else. So, if you think it’s time to start looking and purchase a home, consider some tips that can guide you through the process.
There are lots of opportunities for first-time homebuyers in the current housing market. Interest rates are lower, houses are now more affordable, and most importantly, there are plenty of houses for sale. Therefore, you can have unlimited choices when looking for your dream house.
Considerations before Buying a Home
First, determine your long-term goals and consider how a house purchase fits in with your plans. Why do you want to buy a house? You may see home ownership as a symbol of your independence or you may like the idea of being a landlord.
When searching for a home, consider:
- Where do you want to live? Narrow down a list of attractive neighborhoods. Also think about the house styles you like.
- Make a wish list. Although there is no perfect home, it’s a good idea to start your search with a list of the house features you need and want.
- Don’t judge a book by its cover. Same goes for the house. Look around inside and out; check out every room before creating an impression of a house.
- See the potential of a house. When buying a home, it is not only a place to live, it’s also an investment.
- When planning to buy an older house, hire a home inspector to examine the visible surfaces, structural integrity, and electrical and plumbing systems as well as waste lines and faulty fixtures.
How about financing?
- It’s a good idea to secure your financing before looking and buying a home. Having a pre-approval from your lender will give you an idea of your price range.
- The “rule of thumb” says you must be able to afford a mortgage no more than three times your income.
- Remember: Lenders deduct debt payment from your income. Therefore, if you have large debt, you have less income and will be able to afford less house.
- Walk away if you are not comfortable with the situation. Buying a house is the largest financial transaction most people will make in their lives. If it doesn’t feel right, move on.
Making an Offer
A real estate agent will guide you through the process, helping you decide what price to offer and which conditions to request. Your agent will present the offer to the seller’s agent and the seller will either issue a counter-offer or accept your offer. You can accept or continue negotiating until you reach a deal. After reaching an agreement, you will make a good-faith deposit (earnest money or down payment) and the process continues through to closing.
There are lots of things to consider when purchasing your first dream house. However, keeping these tips in mind will help you to navigate the process and avoid any possible mine-fields. Take enough time, do some research, and do not allow anyone to pressure you into purchasing a home, especially if you are not totally sure of it. In this market, there will be lots of properties to choose from, so make sure the house your buy is definitely the perfect place to make a home.