A person often feels nervous and confused while buying a home for the first time. There may be plenty of properties and real estate brokers in the chosen locality. When many options are laid out, it is quite hard for new buyers to choose the most suitable home. Also, they may be unaware of the necessary procedures while buying a house. The process of finding a new house is quite important for a first home buyer as his life with his loved ones is going to be spent there. Certain valuable points are discussed here to help a first-time home buyer.
Essential Points to Consider as a First Home Buyer
Determine the Budget for Buying Home:
It is every man’s dream to own a house. However, one’s financial capabilities have to ascertained prior to buying the first house. He should decide whether he can afford an individual type of house or an apartment. Some online affordability calculators estimate the amount the buyer has to pay for buying a new house based on the area location and affordability. The amount of home loan available as per his preapproval letter is also included to calculate this budget for buying the new home.
Hire a Real Estate Agent:
A reliable real estate agent should be contacted for availing the best deal while buying a home. Generally, local agents are preferred, as they are aware of all the information about the available homes within the budget of the first-time buyer. The agent should accompany his client to visit all the shortlisted properties and clarify the buyer of any doubts if any. A competent agent also helps the buyer in getting the chosen home at a more reasonable price.
Find Out a Suitable Home:
For a first home buyer, selecting a house can be exhilarating as well as tiresome. Several factors play a role in it. First, it is necessary to decide the type of house, according to his financial abilities and family requirements. Second, he should decide the locality and nearness to his office and children’s school. In addition, it is necessary to check the neighborhood of the offered property. Available transport facilities and safety features of that place should be judged as well.
Arrange the Down Payment:
Every buyer needs to pay a large amount of money as down payment when buying a new home. This payment is seen as a token for allotment of the house by the builders. If the buyer has not arranged for a loan yet, this amount has to be paid from his pocket, which might pose an obstacle if there are no savings. Therefore, it is better to save some sufficient amount of money prior to buying a house. The amount of down payment depends on the cost of a new home, which varies from 5% to 20% of the property value.
Look for a Home Loan:
There are many financial companies and banks that offer home loans and mortgages. Also, the rate of interest and the tenure of repayment differ among banks. So, it is imperative for a first home buyer to do some research on all banks and credit unions, their home loan facilities, terms, and conditions, etc. All this information will be available from their websites. After acquiring sufficient information, bankers may be contacted to get preapproval letters for a suitable home loan scheme. However, the preapproval of loans depends on the credit score of the buyer.
Avail State-Sponsored Offers:
There may be some special offers and assistance programmes from the local government for the first-time home buyer. These programmes may help in meeting the down payment and closing expenses. They also provide further financial aids in availing low-interest rates and applicable tax credits for home loans.
There may be several expenses while buying a new property, including the purchase of home insurance. The first-time buyer should know about all these probable expenses. So, he can make the necessary financial arrangements. Then he can expect to get his dream home without facing many difficulties.