Each time my landlord informs me that she is going to increase the rent next year, I start thinking about buying my apartment and being the landlord of myself. The idea is excellent; however, it is not just any purchase; it is indeed one of the most critical decisions to make.
Whether you have a solid financial background or not, you still need to educate yourself thoroughly before closing the deal. I did quite a decent research on this subject, and in this post, I will share with you some of my insights on how to make a dream come true with the right preparation ahead.
Buying a home is never easy; you need a lot of experience as well as patience to get the perfect place to settle in. There are many things to consider, such as a mortgage, insurance, and of course, hiring the best real estate agent.
I gathered below some tips that will help you make the most of your first buy.
1. Consider Your Budget And Requirements:
Before considering to buy your first real estate, you need to think about your financial standing- how much of the available budget you have. It’s not just the cost of an apartment that you need to worry about; there are all sorts of other expenses as well.
Down-payment, mortgage, insurance, maintenance to bills- all these are the expenses that you need to consider when you are budgeting for an apartment.
2. The Search:
Never fall in love with a house that is neither in your budget or fulfills your requirements. Please make a plan before you start seeing homes for sale. When you know exactly what your budget is and you have a written list of essential things for you and your family- it will be easier to find the right house. It will also help the real estate agent to narrow down the search and help you get the best possible place.
3. Mortgage:
Always opt for fixed-rate secured loans, there are many reasons for this, but the most prominent reason is that it’s the purest form of a mortgage payment. The payments are constant, and you will know how much to pay and till when to pay. There is no confusion with fixed rate secured loans. They last for 15 to 30 years with secure payments that you can make every month. You get the loan, and you get set time to pay a fraction every month with a fixed interest rate.
4. Check Your Score
Credit scores matter when you either rent or buy. Why is it so important to have a positive credit score? Well, it helps you get a better mortgage, for one thing. For another, you can secure the best interest rate if you have a good credit score.
5. Pre-Approved Loan:
Getting a pre-approved loan is the best thing that you can do to secure your dream house. If you have limitations, the pre-approved mortgage will give you all the confidence to make an offer on your dream apartment. The agreement shows that you can pay for the property, and you are a reliable buyer. A pre-approved loan also helps your budget, and you will have a better idea of what you can and can’t afford.
6. The Ultimate Real Estate Agent:
You may think that you can do it all by yourself, and maybe you can, but having a great real estate agent can benefit you in a lot of ways. An excellent real estate agent knows all the ropes, and he can find you the best place within your budget and will help you close the deal. Choose your real estate agent with great care, do your research, and get one who has extensive experience as well as a successful track record. Your real estate agent will guide you with financial matters, insurance, mortgage, negotiations, and foreclosure options.
7. Foreclosure:
Buying a foreclosed is also one of the possibilities if you are on a tight budget. A property becomes a foreclosed one when its holder fails to pay his mortgage loan, and the house goes to the lender. The benefit of buying a foreclosure is that you can negotiate a better deal as the lender is motivated to sell the property sooner than later.
8. Location and Neighborhood:
The area that you decide to move in matters a lot, especially if you have a family to consider. Is the area safe? How is the crime rate? Do you have all the amenities for your kids and family? Is it close to your work, kindergartens, schools, supermarket, etc.? Is it well connected to all the landmarks of the city and is accessible?
Conclusion:
Buying a home, especially your first one, is a big project. But it is worth it, and it also can be fun. I was very excited about the idea of having my apartment, design it as I wish, having pets, and the most important- living with a feeling of safety and independence. I am sure all the efforts are paying off. I wish you good luck on this journey.