If you are thinking to buy your first dream home and unlock the door to homeownership, there are few things to be kept in mind. Although this caution may sound like a showstopper, you have to take these important steps. These include the steps right from finding a perfect place to finance your purchase and many other challenges to make your complete dream home. To name a few, these steps comprise mortgage approval the choice of a genuine real estate agent, a home that may fit the budget and many other.
Managing Mortgage Payments:
Many first-timers decide to purchase a new home when they think they’re ready for the investment of a finance. But, the fact is that their affordability has nothing to do with owning a home. Other few specific aspects such as taxes, homeowner’s association dues, water bills, maintenance, property insurance etc. are being overlooked by the first-time buyers. It has to be remembered forever that, taxes and insurance tend to go up in price every year. Thus, it is extremely important to check, whether you are really ready to afford the costs which may increase in the future.
Another mistake done by many people is that they first look for a mortgage and then go for the house and thereafter go for buying it. But, generally many people begin it with a process called finance prequalification, where you sit with the lender to grant the money you are expecting. At only a few rare occasions, does the buyer take their money directly and pay the cash for the home. There is a concern to get a pre-qualified loan from the lender, as there are ample chances of their mortgage getting rejected at preliminary stages. In that fear, the buyer picks a price that is higher in range and then goes to search for a house. Actually, experts say that, if the process is done in reverse it would be more fun, instead of tensely waiting for the lender’s approval. Many feel that the approach of new buyers is a backward approach. It is much better to take a financial decision than an emotional decision.
For anyone new to the game of ‘home buying game’ should form almost a team of a reputed real estate agent, good lender or broker, and even a lawyer might be needed. One cannot move ahead successfully without a professional aid and you are running yourself into the risk if you are going ahead without help. It is dangerous to deal with the listing agent directly if that happens, you will only get the details of their own listings. Either an agent should be hired directly or using references from friends and family, in the latter case, make sure to ask the buyer about previous references. The same principle applies in the case of loan officers or finance brokers. It is very critical for the first-time homebuyers as they are not aware of whom they are dealing with. That is the reason why finding a right professional is very crucial to get a truly independent advice.
So, on the whole, as first home buyer take the decision of buying a home with lots of precision and pre-cautions as it involves many financial decisions to be taken care of. Before jumping into any hurry of owning a home, it is better to think about the details of the information needed to take into consideration. Research is the heart of everything and at the same time over thinking without starting the work may also hamper your attempts to own a home.
By Alyssa Moylan
who is residing in Australia. Alyssa is a writer and writes on various topics like home improvement, business, lifestyle, health, travel and fashion.