4 Essential Tips That a First-Time Home Buyer Should Know
There are few things in life more exciting than buying a home, especially for first-timers.
Of course, current housing market trends mean that properties are being purchased for low median prices, and available houses swiped off the current market in no more than a couple of weeks. As such, it’s tempting – and, in some cases, necessary – to make a financial commitment immediately.
However, it’s crucial never to purchase impulsively and do things the right ways to avoid hurting the financial goals that you have and continuing to make payments on the mortgage even into your retirement. To this end, here are some essential tips that everyone buying their first home should know.
- Free yourself of debt
Let’s face it, home ownership is expensive. There are no two ways about it. In fact, you’ll be spending a lot more than you would have if you rented instead because the responsibility of maintenance and upkeep will fall entirely on your shoulders. And, because these costs can add up quickly, it makes sense to free yourself of debt before you begin shopping for a house.
If you don’t have any additional payments apart from your mortgage, not only will you be able to build an emergency fund for any significant expenses that come up. But you’ll keep any financial worries and stresses at bay too.
- Secure the services of a financial expert
It’s become a fairly common practice to hire the services of a financial expert when buying a home. After all, not only can they assist you in balancing your wants with your needs, but some may even have access to mortgage providers and contacts in the real estate market who can point you in the right direction.
So, before you decide to spend your money, be sure to consult with a specialist first. Be sure to look for someone within your area. For example, if you’re located in the South East, it makes sense to hire a mortgage adviser in Kent.
- Save first, buy later
For most of us, it’s neither feasible nor practical to save up enough money to pay for a house’s total price. However, this doesn’t necessarily mean that we shouldn’t save at all, at least for twenty per cent for the deposit, or more if possible. Doing so will help you keep your mortgage low since you’ll avoid any additional fees that would’ve been attached to it otherwise – and you’ll save yourself more money in the process.
- Don’t forget about closing costs
Apart from the deposit, it’s important to consider the closing costs of the property too. Usually, this amounts to three to four per cent of the total purchase price of the home. And the fees usually include the following:
- Inspection
- Appraisal
- Legal fees
- Insurance
- Credit reports
A house is a significant purchase – perhaps the biggest you’ll likely ever make in your lifetime. And it’s for this reason that you mustn’t mess it up. And by following all of the tips that are listed in this article, you’ll be able to get the home that you’ve always wanted with minimal trouble.
