Purchasing your first home is an investment, but also a massive financial obligation that can easily backfire if you overextend yourself. The biggest worry for most buyers is acquiring an asset without getting in too much debt.
Today, we’ll take a look at a general guide to buying a home the right way!
Make Sure You Research the Market
What you want to do is buy when the prices are dropping and avoid buying property when the prices are on a rise.
There’s a similar rule about location. Houses and apartments in better or more popular neighborhoods are traditionally more expensive. However, properties that are a little way down the road can often be much cheaper.
If you don’t mind driving, why not think about buying an out-of-town home?
Prices of property will plummet and rise in regard to their location, just like in regard to the timing. This is something that real estate agents are very well aware of and it’s something that they keep track of all the time.
Hiring a good real estate agent often means that they don’t only know what property is right for you, but also when is it the right time for you to purchase.
Check Whether You Can Handle This Investment
Buying a home, just like buying a car, is an investment. It’s crucial that you ask yourself do you even need this investment at this point in your life. Just because you have money right now doesn’t mean that you have to buy property right now.
When you buy a home and you move into it, you’re committing to living in that one spot for the foreseeable future – or in some cases, for the rest of your life. Make sure that this is what you want, because selling the home after you’ve bought it is just another complication that you’ll want to avoid.
Take a look at your finances and do some calculations. Check whether you can even afford buying property right now. Even if you can afford property, is that sort of financial obligation going to cause major changes in your lifestyle?
It’s also important to take a look at all the different ways you could finance this endeavor. There are straight-up, traditional mortgage, but there are other methods too. For example, Federal Housing Administration loans, reverse mortgage, rent-to-own and other methods.
Find a Good Agent and Start Looking for Properties
If you’re certain you’re ready for this step, you’re free to look for properties on your own, but hiring an agent really does pay off for most buyers. Agents know their real estate very well and they usually know exactly what you’re looking for.
As already mentioned, a good agent won’t just look for the right property, but also the right time for you to actually buy the property. Have your agent start house hunting and don’t let up until you’ve found the right place at the right price.
The most important factors that you have to keep in mind when you’re buying a house are: the location, the size and the state of the property, property taxes and utilities, and if you’re thinking about starting a family, the local school district’s ranking is also important.
When you’re taking a look at properties, don’t forget that you need to go through with a very detailed home inspection before you commit to buying a home. During the home inspection, your home inspector is going to check quite literally everything to determine the condition of your home.
You can choose the home inspector on your own, but you can also let the real estate agent take care of that. Some people warn against this, as real estate agents and home inspectors sometimes have an under-the-table deal to always recommend one another.
It’s, however, easy to check your home inspector’s credentials and make sure that they’re worth the money.
Finalizing the Deal
If the property is in an all right shape and you’re ready for the purchase, the lender of the mortgage loan (usually the bank) will have a property evaluator over to appraise the property for themselves and you can know the exact, fair price of your home.
After that, all that’s left to do is for the lender to transfer the money, you to sign the documents and move into your new home.