Money is very important part in our lives. Many people think that huge money is enough to change their lives forever. Some People prefer to buy a house, other like to start new business, so they can make more money. Today, buying your own home is not just a basic need but also brings along a sense of pride, achievement, freedom and security. Deciding to buy a home is one of the biggest steps one can take in life and for most of us it’ll be the one of the biggest investment decisions. So it’s imperative to make sure it is done wisely as there are so many things to take into account when you buy a home.
The challenge of buying a home for the first time can seem so daunting that it’s tempting to either just go with the first house that falls in your price range or continue to rent. To help you demystify the process and get the most out of the purchase, we’ll examine what you’ll need to consider before you buy, what you can expect from the buying process itself, and some handy tips to make life easier after you purchase your first home. If you’ve decided you’d like to own your own home, start your search with best website, nowadays there are so many Real estate websites offering many tips. one of them the greatest Growing Real estate website called realtycompass.com, offers few things referred by realtycompass that you can do to make the process easier and avoiding mistakes. realtycompass started 2 years back with a simple mission of helping home buyers make the right purchase decision.
The idea was conceived post the horrific experience of the founders when they ended up buying a wrong project from a wrong builder. realtycompass mission is to make the home buying process completely hassle free by extending a helping hand and be your friend and adviser in your home search process. A good way to find out how much you can afford to spend on a property is to review your household budget.
Take what you’re currently saving toward a deposit and add in what you pay in rent, to work out how much you can afford to repay. Work out how much you can comfortably afford to borrow without stretching your budget too far, making sure you have a buffer. Include all the costs that come with home ownership: up-front costs like stamp duty and legal fees and lender’s mortgage insurance, as well as ongoing costs like land and water rates, house and contents insurance, and repairs.
Some financial tips for first home buyers
- Find a good mortgage adviser– A mortgage broker is there to help you find the right home loan for your situation. Since this is your first home loan, a mortgage broker can show you the ropes and explain all the features available.
2.How Much Home Can You Afford? -. There is nothing more important than planning a workable budget and sticking to it when contemplating buying your first home, as well as continuing with a revised edition once you have successfully pocketed the keys. It will be through sticking to a budget that you will get to understand how much you will be able to afford each week once you get down to organizing your home loan.
3.Choosing what and where to buy– Your first home may not be your dream home. But it could be an affordable first step on the ‘property ladder’. There’s no point owning your own home if you can’t keep up with the mortgage repayments. Real estate websites are a good place to find out how much properties are worth in different areas. If you want to buy an apartment or townhouse, check your bank will lend on these types of properties – not all will.
- Know your limitations. Whatever you do, do not buy what you can’t afford. It is easy to convince yourself that you will only have to struggle for a couple of years and then everything will be alright once your promotion comes along. What if something were to happen in the meantime, or the promotion never came. You could stand to lose everything and you will not have the benefit of the First Home Owner Grant and any other first home buyer incentives the second time around.
5.Research Neighborhoods and Builders– When buying in a new subdivision, consider working with a buyer’s agent who knows the area well, can set up home tours and walk you through the closing process. When researching real estate agents: Remember, the listing agent works for the builder, not for you. They’re trying to hit a quota, not help you make the right decision for you and your family. Many states regulate how agents deal with new subdivisions. If you have your own agent, tell him up front that you’re interested in looking at new homes. He must accompany you on your first visit to any new subdivision; if he doesn’t, the builder’s sales rep will get the full commission if you buy a home there.
6.Get an Inspection and Home Warranty– Once you decide to buy a new home, make your sales contract contingent on a final home inspection by a professional you hire. Never assume that because a home is newly constructed, it isn’t going to have defects. Municipal inspections for code violations are nowhere near as thorough as an independent professional inspection. If possible, have the home checked during each phase of building, when potential problems are easier to spot. If the builder objects to this, consider it a red flag.
- 7. A substantial deposit– The saving of a deposit will help you in two ways. First it will show your potential lender that you can exercise financial discipline over a period of time and secondly the bigger the deposit the larger the equity you have in the property right from the start. This means you will pay less interest. One of the best ways to do may be to take out a high interest savings account.
- Be a frizzly buyer– Do not necessarily believe all you are told. Make sure you carry out thorough building and pest inspections and find out what prices similar houses are selling for in the same locality. If you do your research properly you should be pretty right.
9.Get an Appraised Value and a Home Inspection – Once you’re under contract, the lender will have an appraisal of the property done (usually at your expense) to protect its financial interests. The lender wants to make sure that if you stop making your mortgage payments, it’ll be able to get a reasonable amount of its money back when it forecloses on your home. If the appraisal comes in at considerably less than your offering price, you may not be getting a fair deal. In fact, the lender may not even let you purchase the home unless the seller is willing to bring the price down. A home inspection, which is completed after you’re under contract, will also give you a way to gauge your offering price.
10.Does the Price Feel Fair to You?- If you’re not happy with the property, the price will never seem fair, even if you get a bargain. Even if you pay a little over market value for a home you love, in the end, you won’t really care. Make certain you receive all that you are eligible to receive. The various state and territory governments also offer their own incentives to first home buyers in the way of grants of their own, as well as waiving or giving generous concessions off the costs of stamp duty imposts. Make sure you know what is available in the locality you are buying your first home.
So the conclusion is When you’re shopping for a home, it’s very important to understand how homes are priced & build so you can make a sound investment and reach a fair agreement with the right seller. Using these tips, you’ll be able to make a confident and well-informed offer on any home in any market.
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