As they always say, the beginning is the most exciting part—and we couldn’t agree more! The notion is the same for first-home buyers and their journey to finding the perfect home.
Beyond all the excitement are the responsibility and financial discussions that come with being a property owner. Here are five simple steps to avoid mishaps and costly mistakes in avoiding regrets for first-home buyers, guaranteed to make your experience a pleasant one:
Step #1: Keep Your Lender Close
Before anything, obtain pre-approval from your lender. This not only ensures that you’re looking at suitable properties but also allows you to act quickly once you’ve discovered what you’re looking for.
Because most pre-approvals are only valid for 90 days, you should contact your lender once a quarter to verify if any criteria have changed. So, keep your lender close and get in touch with them regularly.
Step #2: Understand the True Costs
Home loans are not as simple as they look; there are several additional fees to consider. Among these costs are home inspection reports, lender mortgage insurance, solicitor’s fees, and stamp duty. As early as now, you must know that it is essential to include all of the extra costs of purchasing a home—doing so ensures you avoid surprise costs later!
Step #3: Stay Within Your Comfort Zone
It’s easy to get carried away when it comes to significant purchases. However, when it comes to acquiring a home, first-time buyers must be mindful of their financial constraints.
Budget-conscious first-time homeowners are less likely to be disappointed. The simplest way to avoid overextending yourself is to keep track of your current inflows and outflows. If you know exactly where your money goes each month before you buy, you will be in a much better position to develop an affordable repayment scheme.
When making an offer, never offer more than your planned purchase price. You never know what could happen in the future to put you in financial jeopardy.
Step #4: Fully Understand the Purchase
You must first decide what you wish to accomplish. This part is critical in any home-buying situation, but first-time buyers often overlook it. After defining your goal, you’ll understand why you’re buying a property and what it means to you in the future. Also, be aware of your borrowing capacity as well as the lifestyle you intend to finance.
To remain objective when examining properties, stick to a list of what you want in a house and its surroundings, including the neighborhood.
Step #5: Be a Savvy Buyer
When examining a home you like, it can be difficult not to let your emotions get the best of you. The temptation to get too far ahead and caught up in a property’s beauty frequently prevents individuals from evaluating other vital issues.
Be a savvy buyer and go beyond the property—consider local hospitals and schools, the neighborhood’s economic situation, development sites, and general accessibility.
Conclusion
As you begin the search, buying a home will teach you many things. One of the most important lessons you will learn is to be realistic. Dream homes exist, but it is not always financially healthy to live out your fantasies regarding big purchases. So make sure you write out what you can and cannot compromise on, and make sure you stick to your guns.
Are you looking to purchase a home in Perth? All of the Finance Managers at FinanceCorp are fully qualified, trained, and experienced mortgage professionals who live and breathe finance. With us, you’ll achieve your dreams and buy a home with zero apprehensions. Enquire today and get a better loan!