5 Steps to First Time Home Ownership
Buying your very first house is going to be a memorable experience throughout your life. Whatever the reason behind your decision, you need to be prepared before you take the plunge and purchase your own property for the first time.
Mortgage pre-approval
House-hunting is a tiring and often frustrating activity. Imagine finally finding the perfect house but having to let it go only because you weren’t prepared in time – that is what happens when you go house-hunting before arranging the finances. It is very important that you secure a mortgage in principle agreement or get a pre-approval, which shows how much money a lender is willing to lend you. Having a mortgage lined up beforehand will automatically put you ahead of other buyers.
Be prepared for other related costs
Before you commit to anything, you need to make sure you have all your finances in order. You will not only be liable for mortgage payments since lenders these days require you to submit 5 – 10% of the purchase price as down payment before they finance your home. Moreover, you have to consider paying legal fees, survey and appraisal costs and home insurance apart from the expenses of transferring your existing furniture and items to your new house.
Separating wants from needs
Before you go house-hunting, it is important to be clear about your requirements. Some conditions, like the number of rooms in a house, are not flexible, while others, like the type of flooring, can be looked over. Start short listing properties according to your needs and then compare your wants.
Make sure you are represented
Hiring the services of a sales professional, something not many people consider seriously, can be very beneficial. These professionals deal with real estate on a daily basis and are much more aware of the market than you can be. Once you have hired a sales professional, make sure the person knows all your requirements and your budget so that he/she can properly guide you in finding a suitable property.
The offer and purchase
Having found the perfect house which meets all your requirements, you will need to make a formal offer to purchase it. If you have hired a sales professional he/she will help you negotiate the price and prepare the agreement. It is important that you research the local market and note the prices of comparable properties before making a reasonable offer. The presence of a sales professional throughout this procedure will ensure that your interests are protected.
Move in and enjoy your new home
Once everything is finalized, move in to your new house and enjoy the experience. You don’t have to start renovating the day you get the key. Take time to consider everything and start with setting up the place according to your preferences.
