At some point in your life, you will buy a house. It is a part of growing up and becoming an adult in the real world. It is scary, terrifying, and exciting in equal measure, but mostly it is necessary.
The problem that you will face is your inexperience. Obviously, being your first home, you will never have been through the experience before. Added to that, the process is incredibly complex and confusing. So, before you delve into the dark, murky waters of real estate, you need to be aware of a few things first.
How Much Can You Afford?
Knock up a budget and stick to it like your life depends on it. Your budget will determine how much you can spend on your house without putting yourself in financial difficulty. Firstly, look at your expenditures and how much you earn. What is the total? That total is what you can afford to pay on mortgage repayments every month. Also, take a look at your job. Is there scope for improvement and more money? Or, is your job looking unsecure? You need to take everything into account in your budget.
The odds are that you will need a mortgage. First-time buyers don’t have hundreds of thousands lying around in their bank account, so they need help. However, before you sign on the dotted line, is the mortgage right for you? Again, the repayments and interest are issues, as is the length of time to make the repayments. Plus, you should also take the lender into account. Are they reputable and will they keep their end of the bargain? Most accredited lenders are perfectly fine, so stay away from the ones with little to no accreditation.
Even with a mortgage, you are going to need a deposit. The deposit shows the lender that you have the means to pay at least the minimum required. Plus, it is collateral should anything go wrong. In the case of a deposit, size matters. The bigger the deposit, the more chance you have of securing your mortgage and your house. For more info on mortgages and deposits, take a look at this first time home buyer program. It should answer every question and more.
Is It Perfect?
To be honest, perfect properties are like trying to find a needle in a haystack – it is almost impossible. So, what you should be looking for are the core essentials that you don’t want to compromise. The location is often the thing that most people take into consideration because it affects commute times and their security. But, some people just want a good looking home with plenty of space for the future. What’s your preference?
Don’t Pay The Asking Price – Negotiate!
Unlike most purchases, the price is not set in stone. What you have to do is find the amount that the sellers are willing to accept as they know the property won’t go at retail value. Obviously, you don’t want to pay the asking price, so it is important to haggle. Stay strong and don’t look desperate, and wait for them to make a move and then react.
Finally, get help. A lawyer’s and realtor’s skill and experience is invaluable when it comes to buying a house. Just make sure you can trust them.