It’s both exciting and nerve-wracking to think soon in the future or if you’re already on the lookout, in a few month’s time, you can get ahold of your own house. It’s exciting looking for potential houses and envisioning your dream interior; it’s nerve-wracking to go through all the daunting documents and other processes you need to accomplish.
When you think you and your husband are ready to buy a house for your family, don’t step inside model houses knowing close to nothing. At least, do a bit of research to gather basic knowledge regarding the buying process and things to know beforehand.
Find a lender first
What comes first: finding a lender or finding an agent?
This is where most first-time homebuyers experience hiccups when they’ve already found an agent and a house without a lender first. Homebuyers should always speak with a lender first before starting the house search.
Once you’ve met with a lender and you’re finally settled on a home you want to buy, you can increases the odds of acquiring that property with either a pre-qualification or a pre-approval letter from your lender. This is of course, advantageous if your income and credit file are qualifies above the minimum range and your employment history is dependable.
Do not borrow the full amount the bank has lend you
Just because you’re approved for does not imply that your smart move is to spend all that cash to finding a house more than your initial budget, one of which that is equal in amount to your loan. As a general rule of thumb and probably the oldest rule in the book, it is wise to take 20 percent less of the amount the back has provided you.
This means, if your mortgage broker approved your loan and provided you with a $500,000 housing loan, shy away from house that amounts the same. Instead, only look for houses that are under $420,000. Don’t push your budget to its maximum for you might only find yourself in a debt cycle soon after you discover the other fees and payments you need to settle.
Get an agent
As soon as you’re approved for your mortgage, you know you’ll immediately start house hunting. And once you do, save yourself some time and trouble of the daunting search by getting yourself an agent.
Imagine you’re in the process of buying a property and you encounter small hiccups along the way without an agent, what’s your move and how much do you know about the issue and how to fix it? Agents have likely experienced these situations and have more knowledge than you about it, they will advise you what is truly happening and they’ll advise you what to do.
Most people think that getting an agent costs a dent in your wallet. Truth is, these agents are commissioned by the sellers once the home is sold. There’s really no need to worry about paying for one once you realize this.
Don’t rush things
There’s no need to rush things especially if you have a baby on the way. As you know, the pressure of that thought alone might compromise all the other factors you should consider when finding the right home for your family.
Take all the time you need, not all the time you think there is. Buying a home isn’t just a stroll in the mall. It’s more than just a home—it’s an investment. Take the time to look around the neighborhood, look in different places, get a second or third opinion, read the fineprint, and the like. if you think you’ve done your checklist and you’re truly ready to buy it, then there’s the time to pull the trigger.
Get to know the neighborhood
This is one of the most common rookie mistakes that can cost you sleepless nights and itching regret.
When shopping for a house, keep in mind that you’re not just buying a property, you’re also buying the neighborhood. Before you commit and push the purchase, explore around the neighborhood and observe the community. Is the area safe? Is there anything fishy around? Is the community family-oriented?
Remember, a broken pipe is easy to fix but the misery of living in a neighborhood you dread, that’s going to cost you a bank and many headaches.
Take note of all your negotiations and agreements
Many things can be promised and agreed to but unless these negotiations are put on paper, the exchanges didn’t exist.
The buying process can be stressful both for the buyer and seller. Buyers may prefer a better deal and negotiates with the seller if he can deliver. Is there any property depreciation- related agreement? Is there any appliances or furniture agreement? Perhaps any repairs and maintenance?
The seller may want to raise a different deal. Once you both have meet with a deal favorable for both parties, put that agreement on paper and have the seller/buyer sign it. This way you can avert miscommunication and conflict.
We’re all humans, we all make mistakes. But home buying is too big and expensive to do wrong. Keep these few basic home buying know-how in mind upon searching your first house.
What other tips and advice you’d like to share to our first-time home buyers? Share it with us!
About Chie Suarez
Chie is a daytime writer for Depreciator – Tax Depreciation Schedule, a company dedicated completely to Tax Depreciation Schedules that aids the Australian property market.
August 5, 2016