Tips in Buying Your First Home
Buying a home is such a big deal and can often times be stressful. After buying two homes, I can honestly say I have some good tips for those of you looking to buy your first home. Or maybe you had a snafu with your first home purchase and vow to never buy again? Check out the following tips and maybe they can help you save yourself a few headaches the next time you are looking to buy a new home:
1. Get Pre-Approved For Your Home Loan
Loan pre-approval is where you are given a loan limit for a certain time let’s say like six months. This lets you know exactly how much you can afford when you look for a house to buy. Loan pre-approval makes your finance organised and prevent you from wasting your time looking for properties that are not in your price range. Also, this way, you don’t need to stress yourself out finding a property before you can apply for a loan.
2. Bigger Isn’t Always Better
Yes, we all want a beautiful home, but bigger doesn’t always mean better. There’s an old adage in real estate that says don’t buy the biggest, best house on the block. Seriously! You don’t want to limit yourself when it comes to resale. Your home is only going to go up in value as much as the other houses around you. Think about the future when you are buying a house.
3. Keep Your Money Where It Is
If you are planning to a home within six months, do not make any big purchases or move your money around. When it comes to buying a home, you want to make sure your credit profile is in good standing. Lenders want to see that you are a reliable buyer and you want to be able to get the best loan you possibly can! Avoid opening up new credit cards, amassing too much debt or buying that brand new boat or other toys. You will have a hard time getting a loan!
4. Watch Out for Closing Costs
Expect to pay extra like two to five percent of the price of a property. This seems like a low number but properties are pretty expensive. Let’s say your property costs $150,000, its closing costs could be like $3,000 to $7,000. There are many fees and expenses in the process of a loan. This includes title fees, attorney fees, lender fees, insurance, interest, and a lot more.
5. Think Long-term and Think Re-sale:
I mentioned it a bit earlier, but definitely think about the long-term. Are you planning to have kids? Will you be taking care of elderly relatives? Will you only be living in your home for a few years? You want to consider location, the number of levels the house has, the busyness of the neighbourhood.
Wanting to check out some really cool homes abroad? Check out these houses for sale in Sydney…yes, I mean Australia, mate!