When you’re a first-time buyer, you might want to dive straight into the deep end and buy the first property you find. And although this might be tempting, there are certain things that you need to get in order before making the big move.
Yes, it’s an exciting milestone – no matter what your age. But it’s vital that you are fully prepared for the decision in advance of moving day. To help ease this transition, here are the top four tips that you should follow:
Location, Location, Location
This might seem like an obvious point to make, but it’s nonetheless important to mention. At the start of the journey, you need to consider where you want to live – do you want to live in your hometown? Or perhaps a new location that you’ve loved to visit? This will be dependent on your budget, where you work and your bespoke preferences. Key factors that many people take into consideration, is how far the property will be from family and friends, as well as how close it will be to amenities.
If you’re moving in with a friend or a partner, you’ll also want to make sure that you’re on the same page and are both happy with the location in question.
Consider the Market
Unfortunately, the market is ever-changing. And because of this, it’s perhaps harder now more than ever to find a home that is suitable for your budget and personal preferences.
So when you’re starting to gather the funds for your first property, it’s important that you keep an eye on the real estate market, including the trends within the area you are wanting to purchase etc. It’s also invaluable to gage the advice of a realtor, who will help to indicate what you can realistically get and the areas/types of properties that you should avoid.
Decide on A Realistic Budget
You don’t want to have to contact a bankruptcy lawyer as you have overstretched yourself on purchasing or renting a home (or even because you’ve gone over the top with buying furniture which was way more than you could afford). So before you make the investment, you need to sit down and consider how much you can realistically spend. Houses are expensive – no matter where you’re located or the type of property you are looking for.
It’s essential that you work out how you will acquire your deposit and how you will pay your mortgage each month. If you’re thinking about buying rather than renting, you’ll need a good amount of money that you can put towards the property at the start of the process. Whether this is acquired through an FHA loan or through the bank of mom and dad, it’s a key factor into purchasing your first home.
When setting a budget, you might also want to consider the following:
- Potential costs of any renovations you want to make.
- How much home insurance will cost.
- Other costs associated with moving – e.g hiring a moving van.
What Mortgage You Can Get
Mortgages might seem terrifying, but they don’t have to be. Although they signify that you’re now an adult that can no longer rely on living for free at your family home, they indicate the start of a new phase in your life. When you’ve found your dream home, the reality that comes with getting a mortgage is something that you’ll have to face.
But how do you know which type of mortgage is suitable? It’s a good idea to compare and contrast various mortgages, paying attention to the following:
- What type of rate do they offer you? Do they offer a variable or fixed rate?
- How much they cost each month.
- The repayment terms – e.g 25 or 35 years.
If it has other fees – e.g valuation fees, advisory fees and arrangement fees.