Making the decision to buy a home can be one of the biggest financial moves you will make in your life. With your new house will come many warm memories. However, while you might be excited to get going with the process, you should pause to consider several details before committing to buying a new place. Since you have never bought a home before, you will want to stay informed about all the ins and outs of homeownership before you make the leap. These tips will help you through the process, so you end up with a home sweet home that is right for you.
Is It the Right Time?
Consider your lifestyle. Do you have a steady, long-term job? Are you planning to remain in one place for a significant amount of time? If so, then you might be ready to buy your first house. It is important to remember that buying a home is not something you can easily back out of. There are financial and emotional ramifications to losing a home because you couldn’t afford to live there in the first place. Take the time to really make sure the moment is right for you to become a homeowner. If you can safely say it is, continue reading for the next steps.
Check Your Income and Credit Score
To make this purchase a financially sound investment, you are going to need to take a close look at your income. How does your spending compare to your earnings? Additionally, anyone looking to buy their first house should check their credit score. Your credit score decides the interest rate you will pay on your mortgage (and unless you are paying in full and in cash for your new home, you will need a mortgage). Therefore, your credit score dictates how much you will be spending on your new place. If you have a consistent record of accomplishment for being debt-free, that means you have a solid credit score. If you struggle with debt or other financial pitfalls, however, you may want to consider improving your credit score and financial situation before looking for a home.
Find Your Budget
Once you’ve organized your financial situation, you can make your budget. Decide on a listing price that is affordable based on your income. When deciding this, keep in mind the extra expenses that come with owning a new home. You may want to spend everything on the house itself, but things like taxes, repairs, and moving costs can creep up and surprise you. According to CNBC, the cost of repairs and maintenance represent 10-20 percent of your home annually. If you aim too high on a listing price, you won’t have money left for these incidentals. Cue a debt circle of doom.
Realtors and Home Builders
Whether it’s your first or final time buying a home, everyone can use a realtor. This is an agent who will help you find a house, then structure and present your offer to the seller, and assist with any problems that might occur until closing the deal. The business of finding a house often simplifies by using the best of the best, like the top real estate agent in Queensland. This kind of agent can help you find a home at a record breaking price that fits your wallet. Don’t be afraid to ask for help–what you spend on an agent’s advice could make the difference between a smooth process and a nightmare.
It might be a part of your plan to have your new house built. This process works a little bit differently because you will need to choose a home building company. You can work together with home builders to design exactly what you envision, with top innovation in amenities, style, and an emphasis on energy efficient technology for a greener home. You may want to look into a local company that builds move in ready homes to make your moving process a little simpler. You can choose everything from furniture to paint, and they will have it ready for you. Easy.
Deal with Loans
Because the purchase you are about to make is so large, you are going to need a loan. If you work with a mortgage professional before you go shopping, you will know what kind of loans you qualify for. You want to find the lowest interest rate possible, so you won’t be stuck paying off your house for half a century. It’s usually best to pay more upfront on a down payment so that your interest will be less in the end. It may require you to pay larger sums in a shorter amount of time, but it’s worth it to not pay the cost of the house again in interest over the course of many years. Working with a small lending company, like a trusted loan agency in Corvallis, OR, can give you the opportunity to work one on one with lenders. This way, you can get to know them and ask as many questions as you have about this new process.
The most notable thing about your new house will be the location. You will want to research the neighborhood you’re planning to live in to get to know it better. Go to open houses, talk to the neighbors. The more you know about the neighborhood, the clearer your decision to move there will become. You will want to choose a neighborhood that has amenities you like and a vibe that suits you.
Make an Offer
When you are ready to close, make sure you are comfortable with the offer you are presenting. It must reflect your financial circumstances. You should also be prepared to negotiate a bit on a closing deal, but your real estate agent will help you with that. The most important thing to keep in mind is that you need to make this decision with your head, not your heart. If you buy a house based off a feeling, you risk overlooking some of the facts that make the home not so nice. You want to be as informed and prepared as possible for what could be the biggest purchase of your life. Cheers to finding your dream home!