A real estate purchase requires a big amount of money and a whole lot of planning. Whether you have been dreaming for years about buying your first home or you have just suddenly made a decision to take that huge leap, you have to consider a lot of things before taking on what might be the biggest purchase you will ever make.
Before you dive in and commit to this important transaction, here are some things you should know before you buy your new home:
- Find a savvy agent. Professionals in the field can impart their knowledge about the ins and outs of the trade as they assist you in every step of the way. Carefully choose the realtor, as they will be vetting your future abode.
- Carefully choose your financial partner. Buying a home is a big decision that can affect every aspect of your life. Consider availing of any grants available in your state to help you lighten the financial load.
If you need another financial institution to help you, carefully choose the right local bank that can help you finance your chosen property. Your chosen bank should be able to swiftly walk you through the mortgage process and create a suitable home loan plan that will match your home needs.
Ultimately, choose a bank that you can trust as you will be dealing with them for quite a length of time.
- Understand insurance matters. Buying a home is a huge investment, and you want to protect your investment by getting home insurance. If you have chosen to purchase your home by taking out a bank loan, your bank or mortgage company will also require this.
Don’t treat it as a mere requirement. Learn as much as you can about it and just like with any transaction, it is essential that you understand everything about it. Take time to find the best offers and carefully evaluate to see which quote is the best.
- Maintain a good credit rating. Your home loan’s interest rates are partly determined by your credit rating. If you want to keep the interest rates of your mortgage to a minimum, try to avoid delinquencies and have good credit standing so you can have better interest rate options.
- Know your capacity. Your bank’s evaluation of what mortgage you can afford may be far from your own assessment. Consider not just the house’s price, but also all other expenses you will cover such as insurance, taxes, and other fees. Commit only to what you can actually pay for, and not based on what the local bank thinks you can.
- Layout your plans. Before you select the perfect house, take into consideration your current situation, your future plans, and what impact they will have on your decision.
Current and future financial commitments, as well as career and personal plans, also affect your homeownership goals. Essentially, they determine how much mortgage and other expenses you can shell out to afford your dream home.
- Always negotiate. When you do find a home that matches your needs and preferences, do not be afraid to negotiate with the seller. Voice out your concerns about the price and let them know of any other requests (such as keeping the existing furniture, if there is any) to find out how you can reasonably come to a mutually satisfying agreement.
- Get professional pest and building inspectors. Hiring these professionals can save you from missing any important home improvement points.
With years of experience, an inspector’s trained eye will not miss details such as a window that needs replacement, a loose doorknob, or worse, pest problems. You wouldn’t want to spend a fortune on repairs and pest control service shortly after moving in.
- Check the location. The neighborhood of your new house is just as important as its features. Safety and security should always be a number one priority. Do your own research to check if the house is in an area that is prone to natural disasters (e.g. is it in a bushfire or flood-prone area?) And check that the neighborhood is peaceful.
- Picture your dream home. Having a clear idea of the kind of home you want can make the process simpler. If you have plans for a future home extension, then a wider lot area will suit you. Think about your lifestyle and day-to-day routines – make sure these fit well in the kind of home you plan to buy.
Alex Morrison has worked with a range of businesses giving him an in depth understanding of many different industries including home improvement, financial support and health care. He has used his knowledge and experience to work for clients as diverse as MyHome, Cosh Living and Adroit Insurance to help them reach their business goals.