Buying your first home is both a pleasure and an absolute nightmare. There is so much to think about and organize and yet it can be hard not to get carried away with the whole process when you are viewing properties that could be yours to own. From thinking about what color you are going to paint the rooms, to what furniture you are going to buy, you may start to lose sight of some of the early steps you need to take to buy your first home. Here are a few tips and considerations for you to think about before buying your first home.
Can you afford it?
One of the first things you need to consider before jumping on the real estate ladder is how you are going to purchase your property. Few first-time buyers have the capital to buy a home outright and so will likely need some help from the bank. This requires you to have saved up a certain amount of money. Usually, people tend to save around 10% of the property’s value as a deposit on the loan that they require. This will give you some idea about how much money you can afford to spend on a property.
Will you get a loan?
Sadly, the bank is not obliged to help you with the purchase of your first home and so you have to prove to them that you are worth it. You do this by having a great credit score, using a mortgage broker, and saving up a large deposit. The bank will likely look at your monthly outgoings and incomings to determine how much of a risk you are before they lend to you. This will also affect the amount of money they are willing to give you.
There are some hidden costs when it comes to buying a home that few people ever reveal to you until you begin the process. Even more complicated than this, is the fact that different countries have different rules. For example, in the UK you will usually spend £500-£1500 on a solicitor who helps you to buy your house. Another £100 on the land registry fee and up to £1000 on any homebuyer surveys you need to do. This will quickly eat into your deposit if you have not planned for these costs.
Take your time
There will never be an ideal time to buy a property. The prices fluctuate often, and it can be hard to judge whether they will shoot up or slam down. Therefore, you should take your time to find a property that is right for you. Think about what you need in your property. Are there local amenities? What are the local schools like? What is the crime rating like? There is always a new property on the horizon so don’t feel pressured to buy right away.
Buying your first home
There is a lot to consider here and sadly there is no class at school that will help you through this. It is down to you to take the time and research the possibilities. Make sure to speak to local experts to get the best advice before committing to buying your first home.