Buying a home is one of the most exciting milestones in your life, as it’s a testament to your financial independence and the start of a new chapter in adulthood. Since buying a home is such a big investment, it should be treated with the utmost care and careful consideration.
Property is one of the biggest purchases you’ll ever make in your lifetime, so it’s the most prudent course of action to think it over before finally going ahead with the purchase.
While making your decision, here some preparatory tips you should consider before you go ahead with the search for your first house:
-
Know your budget
Before exploring your options, know exactly what your monthly budget is to pay off for the loan you’ll be receiving. To determine what your actual allowable budget is, try living with the same expenses you can anticipate when you’re paying off your home loan repayments in addition to your projected costs of living.
If you can sustain this and still live the way you want to, you can finally prepare for homes that fall within that budget. Don’t forget to factor everything in and then apply for a pre-approval on your mortgage, so you know what you’re working with rather than hoping for a home and being let down.
-
Do plenty of research
Mortgage brokers and real estate agents will have a good idea of what’s going on in the property market, so make sure to consult with them in addition to doing your own research.
Know the ins and outs of the potential property you’ll be purchasing and the surrounding neighbourhood. Be as informed as possible and gain an understanding of how properties are actually valued and how that might differ from the price you see!
-
Inspect the property
Before settling on a dream home, make sure you’ve looked at every nook and cranny to sniff out potential issues, like mould or rickety structures hidden behind a facade. Check all appliances and fixtures to see that there are no issues, and don’t be afraid of asking to see every inch of the property before you buy it to make sure you have no significant problems later on.
-
Negotiate as much as you can
With the guidance of your real estate agent, negotiate as much as you can—but always go within the limit. You’ll never know if you don’t ask for a lower offer, one that the seller just might give to you. The extra $10,000 to $20,000 you could save will be worth it in the long run!
-
Work with experienced professionals
Working with experts is a must when making such a significant purchasing decision. Everybody, from your agent to your home inspector, needs to be thorough and looking out for your best interest. The most important expert in this process will be your mortgage broker, as they will set the standard for your home loan and offer guidance in finances as a first home buyer.
-
Be patient
Don’t be pressured if the search takes a little longer than you anticipated. Looking for the right home can definitely take some time, and you shouldn’t be operating on any timeline but your own. As you wait and continue your search, exercise caution with making commitments before you have your loan approved.
Conclusion
The decision to purchase your first home has taken plenty of research and careful decision-making to reach this point. While it can be nerve-wracking or absolutely daunting, by following these six tips, you can be guided on the basics of what to consider before committing to a property. This way, you can be sure before making that home loan deposit.
Getting your mortgage approved is the first step to owning your home. Here at FinanceCorp, we aim to make finance easy, and this applies to how we do our mortgage brokering. All of the Finance Managers at FinanceCorp are fully-qualified, trained, and experienced mortgage professionals who live and breathe finance. Connect with us today to find out more about our services!