If you want to buy a home for the first time, then there are some things to always keep in mind. Purchasing a home is possibly the most important financial decision that you will do for your whole life. The financial after-effects of your home payments are still felt even years after buying the home. From the time of choosing the home up to negotiating prices up to purchasing and then up to making monthly payments, the entire process can be stressful.
Buying a home is a calculated decision, so before you finally commit on paper, here are five things that you have to consider first:
1. Consider your priorities in buying a home. In other words, what matters most to you in choosing a home? Is it how big the home is? Is it the home’s proximity to many types of establishments, such as schools, hospitals, malls, or parks? Is it its distance to your workplace? Is it the characteristics of the neighbors? Are there any developments that are being planned in the area where your prospective home is? Weigh all of them then decide if the price of the home is worth all of the benefits.
2. Examine the neighborhood. Never overlook the significance of having a good neighborhood. This will be the main determinant of your home’s value years after you buy it. When you are thinking about purchasing a home, taking a look at the surroundings can pay off big-time. When the people living nearby seem to be rough, then bad neighbors will begin flocking nearby, thus reducing the value of your home when you go sell it.
3. Find a good inspector who will look at your home in great detail. A good inspection is a crucial part of examining a prospective home before buying it. Find many good home inspection companies by seeking out referrals and contacting buyers who have obtained their services before. Standard inspection can spot portions in the home that need repair. For additional inspection, such as termite, mold, drainage, insulation, or electrical inspection, additional fees may be required. However, inspection is always worth it; you can determine problems before they worsen.
4. Determine if you have to pay extra expenses and factor them into the negotiation. For instance, if the home inspector determines that repairs are needed, then try to shave a few thousand from the price that the seller asks for. Other situations where you can negotiate for a lower asking price are a need to replace the roof and a need to change the appliances to something new.
5. Find out whether you can afford the home that you want to buy. Even if the lender of your mortgage deems you qualified for a loan, you have to ensure that you can pay off the loan regularly. When giving you a loan amount, lenders do not take into account the way you spend your money (they care about your income and your credit score the most). Therefore try to cut down on unnecessary spending habits first before purchasing a home. Also, if you don’t have a stable job, wait for your employment situation to stabilize.