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Top Tips for First-time Home Buyers
- Abigail Yardimci
- Jan 2, 2018
- 4 min read
Navigating the real estate market with confidence . . .
If you are considering buying your first home, you are probably excited, eager, and, to be honest - a little nervous. All of those feelings are completely normal and to be expected. After all, purchasing a home is one of the biggest expenditures you will ever make in your lifetime. As such, you want to get it right. In order to do so, it is helpful to understand your needs and know the best way to have a successful home-buying experience. Keep reading to learn more.
Find the Right Home
When you leave one place for another, you always want it to be a step in the right direction, a way to move the needle in favour of achieving your goals, and, of course, find the right fit for your lifestyle.
With the overwhelming amount of information available today, knowing where to start looking for a new place to live can seem insurmountable. Take a deep breath and then look online at HM property listings, where you can find a variety of homes, flats, or even land to suit your needs.
It is helpful to consider aspects that will affect your daily life in addition to how the home looks or the cost. Keep these important checklist items in mind as you shop for someplace new to live.
What is the proximity to work and school for everyone in the family?
How far is it to the nearest public transportation stop?
What is the local public transportation schedule?
Is there currently adequate parking for your vehicle needs?
Where will guests park?
Is there enough room for your family to grow in place?
What are the neighbourhood and city safety statistics?
Is there utility infrastructure in place for internet access, etc?
By answering these questions before you sign loan paperwork, you can avoid headaches that may impact your lifestyle and move on to something more suitable instead.
Get Your Finances in Order
Reviewing your finances early on in the home-buying process is an essential step to take to ensure you are in a good position to purchase a home without sacrificing any future financial goals. Here are a handful of points to consider when preparing to buy your first home.
Create a budget that includes utility bills and updated transportation costs to and from your new home, as well as the mortgage and related fees.
Save money for a down payment to reduce monthly mortgage costs and insurance fees.
Work on paying off bills to lower your debt-to-income ratio.
Maintain a positive employment history. House hunting is not the time to look for a new job unless you have accepted a new position and are moving for that reason.
Prove your value at work and ask for a raise.
Look at your credit reports and history. Clean up any errors right away.
Avoid applying for new credit cards or loans during the home-buying process.
Shop around for mortgage lenders and get pre-approved.
Always Order a Home Inspection
Whether you are purchasing a flat, a new construction home, or an existing home, you should always get a home inspection. Ensure your home inspector is licensed and qualified to conduct an inspection by looking up their license through the local certifying boards and checking their reviews online.
Your home inspector will not write up repair estimates for you but instead will offer a view into the home’s problems based on their expertise. Once you have the completed inspection report and before you finalize the sale, consider hiring a licensed handyperson to give you an estimate for repairs. This information will help you make a knowledgeable purchasing decision to ensure you can afford the home and its existing problems.
Watch this informative video regarding what a home inspector can and cannot do for you. Of note, the role of a home inspector may vary based on the laws of a specific country or local municipality in which you intend to purchase a home. Do your due diligence and understand what the inspection report will entail so you can make an informed buying decision.
Save Money for Emergency Expenses
One thing that is certain with home ownership is that there will be unexpected expenses. From an early freeze that results in frozen pipes and a water leak to a hot water heater that stops working just after the warranty has expired, there will always be something to spend money on at home.
To that end, it is important for you to create a home emergency fund as part of your financial plan. Set aside money every paycheck in an accessible account, just in case. This way, if an emergent and necessary repair arises, you know it is covered instead of having to get a loan or ask your family for help.
Wait to Decorate
Moving into a new home is fun and exciting. You have a vision of how you want it to look, from the comfortable new sofa to the paint on the walls. Even though you have a long list of things you want to purchase or change about your home, you should consider waiting for a while.
When you live in a home, you begin to learn how it works. Walking through the kitchen with the rest of your family bustling around on a busy weekday morning while bumping into one another is very telling. You will soon realise that the antique buffet table you have been eyeing will not fit in the space unless no one else is in it.
Put a pause on purchasing new furniture or decor and use what you have instead. It is a practical way to save money, repurpose your existing items, and decide what you want in your home instead of making impulse purchases that you may soon regret.
Getting it right
As a first-time homebuyer, the importance of researching different properties and understanding the buying process cannot be overemphasised. Do your due diligence and find the right home for you based on your needs. Ensure it is in good condition by hiring a home inspector, and always save money for a rainy-day repair, just in case. After all, your home should be your oasis, and sometimes it becomes your office, too.
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