Purchasing your first home can be daunting and overwhelming. In fact, expect to embark on an exhaustive search that will confuse you and test your patience. Whittling down your choices to a few available homes is not an easy thing to do. Other than looking for that “perfect” house, you also have to shop around for the best financial deal that will help finance your purchase.
Yes, you are going to need all the help that you can get.
Here are some important tips to heed as you prepare to buy your first house:
Make Sure You Are Financially Ready
If you don’t have a substantial amount of money for your first home’s deposit, you should re-consider the purchase until you are on solid financial footing. While you might be able to find a house that requires a mere 5% deposit, without having enough funds will put yourself in a financial hole. Remember, the less money down would mean higher monthly mortgage payments. This is the reason why most home buyers choose to buy with some cash up front. This is also the reason why you have to narrow down the best mortgage application deals you can find in the market today.
Check Your Credit
Before starting your home search and looking for financing, check your credit. Your credit rating will determine what sort of home loan you will be approved for. Checking your credit reports should give you an idea of what lenders will see. You can request a credit report from any of the credit report agencies so you can take a close look to check if there are any mistakes that could prevent you from obtaining a quality home loan. If you find any errors, take action immediately to correct them as this will surely affect your mortgage applications. You should start your credit review process at least 6 months before you begin your home search so that you have ample time to address any problems and develop a strategy to improve your credit even more.
Start Your Search Online
The vast majority of home searches begin online. Why bother going around from house to house, burning up costly gasoline, when you can search through hundreds of online listings, view virtual tours, and sort through dozens of photographs and aerial shots of neighborhoods and homes?
Gauge the Market
Don’t jump right into your home search without researching and consulting with the experts. Talk to reputable real-estate agents in your area about the current real-estate climate. Local experts will be able to provide unique insights as to the nuances of your area’s housing market. They are able to tell you about price trends, hot spots, school districts and much more.
Keep Posterity in Mind
Don’t opt for a home that only meets your current needs and desires. You might have a big family in the future and your social circle could increase when you buy a lovely home. Also, keep in mind the challenges if you want to upgrade or sell in the future. Ask yourself, what your target market is when the time comes for you to sell the house.
Research Neighborhood Demographics
Find out the neighborhood demographics where you are home shopping. If the neighborhood is full of single people, will you be happy there if you have young kids? Not only will these demographics impact your life but they will also play a part in the sales process when you want to move on to another, better house in the future.
Inquire About Closing Costs
Aside from the price that you will pay to purchase the home, you will have to pay for closing costs. These expenses should not be overlooked as they can be quite substantial. Closing costs include the lender’s origination fees, taxes, title fees, settlement fees and prepaid items such as homeowners insurance or homeowners’ association fees. When you work on your mortgage applications, these are important things to consider.
Are you ready to purchase your new house? These tips are your guides to make your dream of owning your very own house come true.