Buying your first home gets you nervous and exciting at the same time, it is one of the biggest step you will ever take in life. It’s crucial you take this decision seriously, here are some steps to guide you through when it is time to buy your home.
SSESS YOURSELF TO SEE IF YOU ARE REALLY READY
Home ownership is a lot more expensive than renting. You incur extra cost and responsibilities to deal with, you are responsible for paying for all the repairs, utility costs, such as garbage and water, taxes and insurance related to your home. before you purchase your first home, you should take the time to get out of debt and save up an emergency fund, what all this means is you should be financially prepared.
SELF FINANCING OR A LOAN?
Another to consider is source of finance for the purchase of the house whether to fully finance it from your pocket or opt for a loan. If its self-financing then you are good to go but if you opt to use loan, you will have to take some time to look for a lender, remember to enquire from multiply loan source in order to get the one with the best rate and payment plan, once you find a loan with good terms and conditions you can proceed to searching for your house within your finance capability of course.
BE HONEST ABOUT WHAT YOU CAN AFFORD
You also need to determine how much home you can really afford. A good rule of thumb is to keep your mortgage along with your taxes and insurance between 25 and 30 percent of your income. Other experts advise that your home cost be limited to two and half times your annual salary. It can be crippling if you are house poor. If you spend too much on your mortgage you may not be able to meet your daily obligations let alone save for retirement. A smaller house is worth the peace of mind. If you are carrying debt (credit card or student loan debt), you should keep your house payments on the lower end of that amount.
FIND A GOOD REALTOR
After you have determined how much you can really and willing to spend, it’s now time to get yourself a good realtor, a good realtor know more about the market and will be the right person to give you further advice on the type of property you want to acquire, he/she should listen to you carefully in order to find property that suits you and that is within your budget. Once you make an offer your realtor should negotiate terms that you will be happy to go with.
REQUEST A HOME INSPECTION
Home inspection is another important step, a thoroughly inspection on the property is very important. The home inspector will look for hidden problems within the home. Through the home inspection you can learn about issues that may help your decision in buying the home. This may include mold problems, termites, foundation problems, bad roof, etc. The inspection can save you cash in repairs later on. Also, you may be able to negotiate a lower price if you find some problems affecting the property, take the time to find a good home inspector since this can save you a lot of money later on.
CLOSING AND MOVING IN
When the home inspection is done and you are satisfied with the property’s condition, it’s now time to close the deal and move in. Interior and external decoration to the home is now in your hands, your choice of paint and styling is totally at your command.