If you are a first home buyer and you have stumbled across this article, then you are definitely on the right track. The best advice we can give to first time buyers is to do as much research and to educate yourselves as much as possible. Here are 5 things that you must know before buying your first home.
1. A home inspection can reveal many things
If you found that perfect house and are ready to strike a deal, stop right there! You should never every buy a home without inspecting it. Most home purchase agreements are contingent upon inspection and by hiring a professional to go through the house, you can save thousands of dollars in the long run. A home inspector is a licensed professional who will go inspect the property and provide you with a detailed summary where the condition of each item is listed. The report will also have recommendations for repairs. It is recommended that you are present for the inspection as within a few hours, you will learn how everything in the house works as well as its condition. You can ask questions and afterwards, request the seller to adjust the purchase price or repair the problems. If there are major problems that will cost thousands, it is best to get your deposit back and to resume your search.
2. The neighbourhood building plans affect you too
Buying a home in a developing neighborhood may seem like a great investment. While it indeed is, be sure to check the neighborhood building plans to see if the developments actually benefit you. For instance, if you are considering a home with a large playground planned next door, you may have both benefits and drawbacks. While some people may like the ideal of having a playground next to their home, others won’t like the noise, the traffic and the commotion. Check the building plans near your home so that you can avoid any surprises.
3. Pick a house within the right price range
Since you will most likely be getting a mortgage, you will find out the amount that you qualify for. It is not necessarily a good idea to spend your maximum loan amount. Choose a house that is well within your affordability and a little lower than the maximum house. This way, you will be able to get a better interest rate and save some money each month.
4. The landscaping is also important
So the house you love is in perfect condition but the landscaping is a complete mess – should you go through with the deal? This is an important question to ask if you find yourself in this situation. Purchasing a house with damaged landscaping or no landscaping can be just as costly as buying a home with major repairs. It is best that you seek out a property without major landscaping fixes or to ask your sellers if they will consider fixing it themselves.
5. A down payment is always a good idea
Most reputable lenders will require you to put down a considerable down payment amount. However, there are loans that don’t require a down payment. Saving up and putting some money into the down payment is always a good idea as it minimizes your risk. You get to start your mortgage with some equity and enjoy lower interest rates and monthly payments.