Buying a home is a nail-biting experience for anyone, and it heightens if you are young or a first time home buyer. With the rise in real estate prices, it seems impossible to get a good home of choice within affordable rates.
But, take a deep breath! Though it must be your first time, you are not the only one who is trying to make this big dream come true. We will try to make your life easier.
The following guidelines will surely help you to sail across the entire journey smoothly while saving money and by avoiding the most usual slipups.
Check Your Credit
The first step that you must take as an entry to the real estate market is: check your credits. Money is the prime concern and chances are high that you are planning to apply for loans, so take stock of your credit scores. Apply for the credit reports and scrutinize it carefully. See if there are any faults and previous dues that you might have closed but are still reflecting in open accounts. Confirm that there is no default payment and if there are try to clear them without delay. Even a small liability can cause problems from you while applying for home loans. If you find anything incorrect, get in touch with the creditor on priority and try to resolve it.
Start Investing Early
Every individual has a plan of owning a house at some point in his life, so it is better that you start planning early. The younger you are, the more time you will get to organize your finances and plan your purchase judiciously. Real estate market is volatile, and if you can sort your requirements at an early stage, you are bound to make a smarter decision than many other first time home buyers. Create a savings plan for your home and ensure that you don't disrupt it. Start saving a small amount from the early days of your life and you will feel your burden being lessened during the decision-making time.
Plan How Much Loan You Can Afford
Being new in the real estate market, there is a high chance that you will not be aware of the way in which the market functions. To avoid falling into any trap, take the help of a loan officer. After reconciling your salary and savings with your expenditures, he will be able to guide you on how much loan is best for you. It is always advisable to opt for an EMI which is within your capacity or else you might land up into trouble in old age.
Use An Experienced Real Estate Agent
You might be tempted to save a few bucks by not hiring a real estate agent. However, our advice will be to hire an experienced one as he is someone who has good knowledge of the market and he can guide you on your purchase and the various other legalities related to the same. Since you will work with him very closely, it is important that you hire someone with whom you can get along well and who understands your requirement. He also needs to be well aware of the area you are interested in so that you can guide you appropriately. It is good if you can get someone through personal contacts.
Choose a Home That Matches Your Needs and Budget
Your dream might be to own a penthouse, but pause! Fix your budget and no matter what stick to it. Be specific about your requirements and before you start searching for the house, do the other basic researches on your credit score, the amount of loan you can afford and the price range you are looking at. This will save you from a lot of heartbreaks and will also help your real estate agent to show you the homes matching your needs and budget. Without knowing your finances and your preferences, you will be more of a wanderer. The real estate market has umpteen number of houses, but you need to buy one which matches both your needs and budget so that you don't end up a pauper.
Know The Area… very well
While the budget a crucial role in selecting the house, the neighborhood plays an equal role. Though you might be having a budget to purchase a big house with a lawn and yard, you still will be a part of society. So, if you make the wrong choice of area, your greatest buy might turn out to be a disaster.
Some vital things to check are:
- The locality has good schools, hospitals, grocery stores and other necessitates within reach.
- To check the safety of the locality, refer to the crime report.
- Visit the area during different times of the day to get the vibes of the locality.
Continue negotiating after the inspection
Negotiation is a key factor in purchasing a house and do not stop negotiating until the last moment. Take the help of your agent and try to see if you can get the seller to do the main repairs. You can also opt to split the budget, as small things like plumbing, painting and other internal repairs sum up to a huge cost. Also, never purchase a home at the price stated by the seller; an efficient real estate agent will be able to reduce the cost successfully.
If you want to make your dream of owning a house true, you need to be careful and put in efforts. Nothing in life comes easy and purchasing a house is no different. So, all the best!
Author Bio: Perfect Agent understands just how important it is to have a committed and experienced real estate agent in the process of selling or renting a property. It helps customers find, compare and choose a real estate agent to sell or rent their property. Also, offer the best service in the real estate industry by connecting customers with top performing real estate agents.
Brian is a dad, husband, and an IT professional by trade. A Personal Finance Blogger since 2013 who, with his family, has successfully paid off over $100K worth of consumer debt. Now that Brian is debt-free, his mission is to help his three children prepare for their financial lives and educate others to achieved financial success. He blogs at Debt Discipline.