Most first-time homebuyers would find the experience quite exciting, but it can come with its share of intimidation and challenges. If you are thinking of buying a home for the first time in your life, you should understand that there is a lot you ought to learn alongside a myriad of mistakes, most of which are rather inevitable. However, with a bit of knowledge on how these transactions work, you can be rest assured it would be easy for you to side-step any pitfalls which you encounter in your way. There are three main elements which you can never dare to make a mistake on: location, budget and the hidden costs.
Have a budget
You might want to buy a big house with many rooms in it, the best swimming pool, Jacuzzi, hot shower, gourmet kitchen and five bathrooms. The question, however is, can you really afford it? If you are approved to borrow the price of the home, this might not be the best choice for you. You should find a house which you can afford.
In many instances, having to borrow in full capacity is an arrangement that can backfire. If you find that you are basically hitting the limits of your financial ability anytime you pay for the mortgage, what can happen if your spouse lost their job or kids lacked school fees? This might lead to foreclosure meaning that all that will just be a lose-lose situation for you. It is therefore important to ensure that you are buying within your limits.
Before you even start thinking about buying a home, you need think about your financial picture. Make sure you know what you can afford in terms of monthly mortgage repayments; this helps to ensure that you donâ€™t overstretch your finances. Look for houses that are within your price range.
Visit the neighborhoods where these houses are
Before putting pen on the dotted lines, you have to make sure that the house you are buying suits your needs and preferences. Try and visit that neighborhood from time to time and check the noise levels, traffic patterns, drainages, availability of general infrastructure and availability of recreational facilities. Are there any hospitals or schools in the neighborhood? This is a question you have to get answers in such cases.
When you are doing these searches prior to buying a home, you should also factor in your lifestyle. Do you want to be driving or walking to access shops, public transport or parks? You have to make sure that the neighborhood you will be relocating to is safe and conducive for living; basically, you should he comfortable living there.
Prepare for any additional/ hidden costs
Many people normally underestimate the amount of money they have to pay when making their first home purchase. When buying a home, there are many extra costs which you will have to account for, just like when selling a home. Make sure you have some extra cash to pay for them. These include:
- Home inspections
- Property valuation
- Property surveys
- Pest inspection
- Loan fees
- Legal fees
- Moving costs
This is just but a selection of some of the hidden costs which you might be called upon to pay for. You have to make sure that you have enough money to settle these and other bills if you want your purchase to go on smoothly. In many cases, like in this one where you are buying a house for the first time, things are bound to go wrong. You will only get out of the fix if you have some cash outlay.
You need to talk with a qualified real estate agent if you need any guidance for when you are buying a home for the first time. Nevertheless, you should not just take any information you get at face value. Try to investigate and research so that you are convinced you are up to the task.
An article contribution provided by Sell My House privately – a real estate agency based in Australia. You can visit their Face book Profile here https://www.facebook.com/4sale4lease/info