Five Things You Need To Remember About Buying Your First Home
It is always an exciting moment when you are looking for your first home to buy. But this is also a process that comes with risks. Decisions that you make before you sign on the dotted line could come back to haunt you. Here are five basics of new home ownership 101.
Know What You Need
Make a list of the essentials for your new home. Factor in location, the number of rooms you need, and the proximity to any local transport routes. Separate your must-haves and wants. Remember that the foreclosure moratorium has ended. Stay within your price range to avoid the risk of foreclosure if you cannot make your loan repayments.
Do Your Research
Stay up to date with the latest market news to avoid diving into the market at the wrong time. Ask yourself if you need to move right now if the prices are currently too high. Read about the neighborhoods you are looking at and make time to visit them in person. Commission an independent survey of the property before you agree to anything.
Work On Your Credit Score
Make a detailed list of all your outstanding debts. Look for ways that you can pay any off before you apply for a home loan. Keep making payments when they are due to avoid red flags. Avoid taking out any additional loans as this will impact your credit score. Stay in your current occupation while your credit score is being checked. Talk to your manager to see if they will be willing to provide a reference for you. Ask your parents if they can be your guarantor if the provider requires one.
Find The Right Loan
Look for a loan that offers an interest rate and a repayment structure that you can manage. Read the fine print to stay clear of any hidden penalties or conditions you may not be prepared for. Contact a loan provider that understands your needs as a first time home owner. Take advantage of any benefits that you may be eligible for, such as VA loans or first-time buyer loans. Remember that you may be able to change the terms of your loan later to help with home upkeep.
Make a budget plan that lays out all your ongoing expenses. Remember that the labor market is rebounding so keep looking for new job opportunities. Look for any costs that you can cut. Create a list of all the expenses that you will need to pay once you move into your new home. Factor in any repairs, decorations and other improvements that will not be made by the previous owner.