Buying a home can be an exciting thrilling yet confusing experience. For starters, one is determined to get the best and this can sometimes be stressful and disappointing. To avoid the uncertainty that comes along with it, it is important to do a proper analysis so as to determine what you really want and how to get it.
Important things to consider before buying a house
First Time Home Buyers, before embarking on buying a house, here is what you should know:
- The buying price. This is obvious as one has to work with the available budget. Depending on your taste and preference, you should look for the best deal at the least possible price.
- Your income. You should always consider your earnings so as to determine if you can really afford to maintain the house before purchasing it.
- If taking the house on mortgage basis, always calculate what the total cost will be to determine if it is really worth it. Use the banks rates to make your determination.
- The immediate environment. You should consider the proximity of services and infrastructure such as health centers, schools, police stations and such.
Common procedure of buying a house
Once you have made and finalized the decision to buy a house, there is really no specific procedure set as the standard procedure but the process followed by most home buyers is more or less the same. This procedure involves:
- Identifying the house. You first have to select the house you want to buy among alternatives. This can be based on factors such as tastes, environment and budget etc.
- Determining how you will pay for the house. After identifying the house you then have to determine how you will pay for it. Most financial banks provide various Mortgage Solutions such as home loans and various types of mortgages geared at satisfying the financial needs of first time home buyers. You can check with your bank for a quick run down on how to go about acquiring your first mortgage quickly and efficiently.
- Bargaining on the house. Depending on the amount of money that you have been able to get either through loans or savings, you can then bargain with the seller. Here, he can either accept or reject your offer.
- Close the deal or look for another house. If the seller accepts the offer you can then seal the deal and move into that house. If he rejects, you have no option but look for another one.
Why buy a house?
Buying a house may be hectic and comes with lots of uncertainties. As a first time home buyer, you might be a bit reserved about taking the risk of buying your first house. But in spite of the disadvantages of the whole tedious process, here are some of the reasons why you should buy the house.
- Pride of ownership
- Value appreciation over time
- You get to enjoy privacy
- Your costs are more predictable since the mortgage rate is fixed for long periods of time
- After paying all of your mortgages you get to own the house completely.
What to avoid when buying a house
It is important to get it right. Sure, the process is confusing but here are some of the things you should avoid at all costs.
- Getting too emotional. You might totally fall in love with a house at first sight and overlook everything else. This is wrong. Stay sane!
- Being too picky. This might cause you frustrations as a house really cannot have everything you desire unless you designed it yourself
- Overlooking your budget. You must have a plan in place about how you will pay for a house. If the house does not coincide with the budget, walk away
- Overlooking inspection. Get the house inspected, no matter how clean and fancy it looks, this point cannot be stressed enough, GET IT INSPECTED by a reputable company.
- Not having a plan of how to pay the mortgage. It is necessary to have a plan. This will save you a lot of hustles in the future.