A Guide on Financing and Planning the Purchase of Your First Home

Buying a house is a huge step for everyone, especially for first-time home buyers. As exciting as buying a first home is, the process is also very stressful. Taking a wrong decision can prove to be a very costly and disastrous affair, and many a buyer have learnt this the hard way.

So how can you ensure that you’re doing the right thing? Buying your first house may be difficult but if you do the right things, you’ll be absolutely fine!

Here are some things you should keep in mind before you go house-hunting.

Get Your Finances in Order

If you’re lucky enough to have ready cash to buy just about any property you want, you won’t have to worry about your finances. But if you are planning to take a loan, you can’t start looking for your dream house right away! You’ll first need to ensure that you qualify for a mortgage.

First, you need to check out your eligibility for a loan with your financial institution officer. Note that depending on your credit history, you may or may not qualify for a home loan. Your credit history can also affect the amount of money you can borrow and the time it takes to get your loan approved.

Once you get to know how much the bank is willing to loan, consider how much you will be able to shell out as down payment. Remember that just because the bank has agreed to loan you a huge sum, doesn’t mean you stick to the upper limit.

Look for houses that are lower in the price range so that you don’t end up buying a house that is priced higher than your budget. Also, the lesser money you borrow from the bank, the better for you. Setting a lower budget will also mean you won’t be disappointed when you come across homes that are stunning but not in your budget.

It's Not Just Mortgage

A lot of people make the mistake of considering that they are ready to buy a house just because they are able to afford the mortgage payments. However, your new house won't come with just mortgage payments, but you'll have lots of other expenses too.

In addition to electricity and water bills, you'll need to consider property taxes, property insurance costs, maintenance bills, homeowners association dues, and more. You can't buy a house without considering all of these bills.

Furthermore, if the house needs major renovating or a little fixing, don't forget to add up those costs. Make a note of everything so that you can be prepared for it all.

Think Long-Term

Buying a house is an investment so you have to think long-term before buying one. So if you intend to change your job or shift to a new city in a year or two, you should probably not think of investing in a house right now.

If you really want to purchase a house, be sure to research the market before investing. If you choose well, you could get good returns upon selling or letting the house in the near future.

Pick the Right House

It’s easy to be overwhelmed when looking for a house; you may not like a single property, or you find it hard to decide on one because they all appeal to you. A good way to settle on one is to separate your wants from your needs. Take into account your needs and see if a property has it all and compromise a bit on your wants.

Sure, you need to think long-term too, but that doesn’t mean buying a family home right now. If you aren’t planning to get married and have kids anytime soon, you can always buy whatever pleases you. But if marriage and family planning are on the cards, you would rather buy a decent-sized home in a locality with good schools and quiet surroundings instead of that bachelor’s pad that is only a mile away from your favorite bar.

Furthermore, it is important to view each house you see in the right light. Don’t let the décor trick you into believing that the house is perfect for you, or the dirty carpets make you feel that the house isn’t the right one. Look beyond these superficial things to see what you can or can’t change. Do visit the neighbourhood at different times of the day so you know exactly what you’re in for.

Additionally, you’ll also have to make sure that the homes you visit don’t have problems such as drywall, moisture and condensation, mold, plumbing leaks, drainage problems, etc. Obviously, you don’t want to buy a house thinking it’s perfect only to find out that you’ll have to spend oodles of money on it to get it restored.
 
Take Professional Help

Buying a home without professional help can prove to be disastrous. And you don’t want this happen because this is going to be the biggest purchase of your life!

Avoid going to a listing agent directly; you don’t know who you are dealing with. And if you have no idea about the market, you shouldn’t even think of it. Apart from a good loan officer like a Newcastle Permanent home loans officer, you might need a trusted lawyer by your side too. Hire a reputable real estate agent who will be able to give you sound advice.

Armed with these tips, you are sure to take the right decision while buying your first house. Happy hunting!