Do you think it’s time to buy your first home? Go ahead, it’s a great decision which will probably forever impact your financial life, so you should not take it lightly. The following steps will help you;
Set Goals
Look for them to be real, according to your current lifestyle and conditions of your finances. If you meet the two basic elements to buy i.e. good credit history and stable employment, you are ready to start the process immediately. If not, investigate what you need and get ready. The best way to do this is by making a date plan, and plotting dates to reach the goals and then proceed to the next step.
Evaluate the Advantages and Disadvantages of Owning a House
It might seem that because of the stability and investment offered by the purchase, it only represents advantages, but owning a house carries great responsibilities that can result in disadvantages if you are not ready to take them. If you are to accept the challenge, go ahead to the next step.
Evaluate Merits & Demerits of Continuing to Rent or Live with Your Family
Maybe you’ve been so comfortable living in your parents’ house, or renting the ideal apartment for your singleness, that you have not realized how much comfort it gives. When you buy your first home, you will have to pay the mortgage monthly, fix anything that gets damaged and meet your tax obligations and maintenance payments.
Organize Your Finances
Buying a property costs, even when you get the increasingly scarce loans at 100%. It is important that you have some savings for closing costs and the expenses associated with the move and that you are advised before making the purchase contract of an estimate of them. There may also be expenses for property improvements that are needed immediately to make the dwelling habitable.
Request a Prequalification
It is an important step, but you must get to it after clearing your financial situation, because the bank will ask you to account for your debts, your income and want to know your ability to pay. Prequalification does not cost, nor is it a commitment. It will give you the idea if you qualify for a mortgage loan or what you must do to qualify in the future if at the time you do not meet the required criteria.
Your Affordability
The bank will tell you the estimated amount it will approve, subject to all the evidence, but it does not mean that you should buy at the maximum price the bank will approve. Remember that you will have other expenses, which the bank does not consider such as your children’s ballet or art classes and it is not a good idea to take your finances to the limit.
Contact an Experienced Real Estate Agent
The process of buying a home is not easy, so an experienced real estate agent can help you as he will be in charge of representing you and orienting you on the steps to follow.
Identifying Your Ideal Home
It is the last stage of your purchase, which is the one that takes the longest time, and sometimes it is the most rewarding one. At the end, you will have the house that best suits you with a conscious plan and in tune with your wishes and needs.
