Most things you do for the first time are always exciting! Your first steps, first day at school, first day at work, first love, and even your first home! Whether you’re moving from your parent’s house or want to stop renting and get your own house, you need to research to avoid making mistakes.
Choosing the right home can be overwhelming; however, don’t fret! Naturally, the thought of how to find a house to buy can be daunting, especially if you lack experience in real estate. From the down payment to credit rating, you’re getting pre-approved for a mortgage, property taxes, interest, choosing the right place, and moving in.
If your knowledge is limited about how real estate works and tips for buying a home, you might experience some difficulty. Hence, if the thought of ‘I want to buy a house has crossed your mind, or you want to get all the information you need about buying your first home, this article is for you! Let’s dig in!
In life, there’s usually the right time for everything. You start creché at a certain age; you got your driving license by 15. If you’re interested in joining the military, you’ll have to wait till you’re 17 or 18 with parental consent, and you won’t be legally able to drink until you’re 21 or 18, depending on your location. But the question is, is there a certain age you have to reach before buying a house?
The truth is, there’s no age restriction when it comes to buying your first home. If you’re financially buoyant, you can get your first house at 12! However, a bank won’t be able to let a juvenile sign a contract; hence, experts suggest you’ve to be 18 before buying a home.
If you’ve been wondering, “When should I buy a house,” the best time is when you can afford it. It’s not advisable to use home values and mortgage rates when buying a home. Ensure you’ve properly checked utility costs, property taxes, and other associated bills.
What do you need to buy a house first time? It’s a very crucial question to ask yourself. If you’ve agreed that ‘I want to buy a house, consider some of these factors;
Down payment is the amount paid upfront for a house purchase. This amount varies from zero percent to 20%, depending on your credit score and the loan amount.
Consider going to a mortgage bank and discussing the down payment percentage with the experts. Most government-backed banks and credit union loan programs offer low payments, while non-government-backed loans provide a high payment.
When applying for a mortgage, your lender will have to check your credit history, income tax returns, and debts before pre-approving you for a loan. As a first-time homebuyer, you might have trouble saving enough for your down payment unless family members are there to help you.
Before buying a house, get your credit score in order, as it strongly determines your loan’s interest rate. Credit rating is affected by outstanding balances, several credit cards, whether you pay bills timely, and your vehicle loans. The higher your credit rating is, the likelier you get a house at a low-interest rate.
You might want to review your credit score thoroughly before proceeding to apply for a loan as it greatly affects your chances of getting a mortgage.
Another vital factor to consider when buying a house is affordability. Even if you’ve been pre-approved for a particular loan amount, you don’t have to spend all that money on your first home.
To know your house purchasing power, check out how much money you need to buy a house for the first time and your budget. Take a closer look at your bank statement and spending habits in the last few months to know your spending rate on utilities and other bills.
Once you’ve figured out what you can afford, write down a budget for your monthly mortgage payment, maintenance costs, and other homeownership fees. After figuring out your purchasing power, go to a mortgage shop to start processing your loan.
Another thing to consider when buying your first home is the type of house you’re willing to accept. Do you wish to live in a condo close to restaurants and parks in a town? Or do you prefer living in the suburbs or a busy part of the city?
What about a duplex or a terrace home? Do you want a house with a basement, a home office, and a garage? Do you like swimming pools?
Take time to write down your wish list of the type of house you want. Since it’s hard to get everything on your list, consider choosing the most important one. Talk to your partner and real estate agent to help you make the best choice on your priority list.
A crucial thing to consider when choosing a house is the repairs and maintenance costs. When you conclude on an affordable house, check out what it’ll cost you for the maintenance and repairs before spending more than your budget on the house.
How about maintenance costs like leaking pipes, damps, faulty heating systems, or roof damage? You can keep aside money for maintenance costs to cover all emergencies that may come up. Buying a house with too many repair costs than you can handle might make you spend a significant amount on maintenance and repairs.
Once you’ve decided that “I want to buy a house”, these tips will help you make the right choice. Besides these factors, ensure you get a home inspector to help you inspect the house thoroughly for any underlying problem that you’re likely to face. Congratulations as you take the exciting journey from being a home buyer to a homeowner! Kick back and enjoy your new home.