The experience of a first-time home buyer is usually filled with a myriad of emotions and questions.
As a first step towards financial stability and independence, buying a home is a huge step for the individual.
With the budgets obviously higher than most other investments and so many options available, it can get overwhelming for any first time buyer.
Set a budget: It is important to understand how much you are willing to spend based on your current income, debts (if any) and ongoing expenses. You can use a Loan Calculator to know the potential details of monthly payments based on the loan amounts and interest rates.
Get pre-approved mortgage: Look for attractive housing loan options from different lenders and their interest rates to get a clear picture of your borrowing power. It also makes you a favourable buyer to the seller. Look out for the closing costs, including loan origination fees, appraisal fees, and title insurance.
Build your team: You need to begin with finding a trusted real estate agent to help you start hunting along with a good lawyer to review your contracts and protect your interests.
List your priorities: It is always recommended to make a note of the “must-have” and “nice-to-have” components when house hunting to filter your search accordingly.
House hunting: This is where the actual treasure hunt begins. Check out online listings or seek the help of your real estate agents to help find the perfect match for you. Compare the location accessibility, features, household upgrades, maintenance, and the neighbourhood to find an ideal property.
Negotiate: Once you have a clear picture of the property price, be prepared to negotiate the price and terms of the offer. Compare the prices with the ongoing neighbourhood prices and any recent sales in the same area for a similar property type to get a clear idea about the potential quote. Remember to take into account the seller’s motivation and the market conditions.
Paperwork: Your bank lender and lawyer will help to process through the mountain of paperwork to pass the loan and secure the property deal. It is advisable to scrutinise every document before signing to ensure everything is in order.
Once you have sealed the deal, all you need to do next is move into your dream home and embark on a new journey with your loved ones.
Krishe Pearl
Krishe Avya