The challenge of purchasing a first home can seem like such a daunting task, so much that it might become tempting to just buy the first house within your price range or settle for renting. To help demystify the entire home-buying process and get the most out of it, here is an analysis of what should be considered before purchasing, what to expect from the process, and a few tips to make your life easier once you have received the keys to your first home.
One of the things you should do is examine your long-term goals and how owning a home fits into your plans. Maybe you are just looking to move from rent payments to mortgage payments for something tangible, home ownerships is a sign of independence or you want to become your own landlord. Finding out what you really need will help point you in the right direction. In the process ask yourself:
- What type of home will fit your needs? Property available in SetiaAlam via Property Guru is available in a wide variety of configurations: multi-family-buildings with two or four units, condos, townhouses or single-family homes. Every option has its advantage and disadvantages, so you need to weigh each of them and find the right property that will help you reach your goals.
- What specific features should your ideal house have? You are just about to make what may be the biggest purchase of your life, so you deserve to find a home that fits your wants and needs as closely as possible. Some of the things you should consider include the neighborhood, size, bathroom layout and even appliances in the kitchen.
- Do you qualify for mortgage and how much? It is critical that you have an idea of what you your lender may give you towards purchasing your first home. Some of the factors lenders take into consideration before giving you the money include the amount of debt you currently have, monthly income and length of time you have been in your current job.
- Who can and will help you find that home and guide you through the process? Real estate agents can help you locate a home that fits your needs and within your price range. Organize to meet with one of them and view the houses they find within your criteria. Once you choose a home, the professionals then assist in the purchase negotiation process, including making the offer, getting the loan and completing the necessary paperwork.
The Purchasing Phase
This is a chaotic phase characterized by flying offers and counter-offers, but with the proper preparation and paperwork, you can get through it unscathed. The basic progression of this phase is:
- Finding a home – Be sure to take full advantage of all options available to find homes on the market, including that of a real estate agent to search through online listings and driving around neighborhoods of interest. Also, put the word out there with friends, business contacts and family. You never know, a good lead or reference on an available home might come through them.
- Consider financing options and get financing – First-time homebuyers have various options available to them to get a home. Your state or bank may have programs geared towards first-time homebuyers like you. Shop around and compare mortgage interest rates since they will have a major impact on your home’s total value; it will pay off.
- Make the offer – A real estate agent can help you determine how much money you should offer for a house. Your real estate agent will get together with the seller’s agent and negotiate on the right price. Once an offer is accepted, you make an agreement to purchase the house as the seller takes it off the market.
- Home inspection – Have a qualified individual inspect the safety, quality and overall condition of your potential new home. If serious issues are discovered, you have the option of rescinding your offer, negotiating for a lower price or have the seller carry out the repairs.
- Closing or moving on – If you cannot go through with the deal, be ready to close.
Congratulations! You are now a Homeowner – Now What?
You have signed the necessary paperwork, paid movers and your new house starts feeling like a home. However, the game is not yet over. Here are final tips of what to make your journey as homeowner secure:
- Keep saving for unexpected expenses
- Perform regular maintenance
- Ignore the real estate market; your home’s worth is only important at the time you are looking to sell it
- Do not depend on making a killing on your home to fund your retirement
The Take Away…
This brief overview will help you get on the right path towards purchasing your new home. Remember, the more you learn about the buying process beforehand, the less stressful it will become, and you will also find a house at the right price.