Owning a home is everyone’s dream; however, buying one can really be challenging. More often than not, some people buy their homes for the wrong reasons. It’s either they have fallen into some pitfalls or perhaps got sunk to the bottom of those “buy-a-home-now” myths.
When people rush into buying a home, they’d most likely regret it later on. Everyone – especially the first-timers – must be extra cautious and wise in investing in a real estate. If you’re not mindful about this and you fail to go through the “prerequisites” of home ownership (i.e. making yourself mentally, emotionally and most importantly, economically ready), expect a financial disaster.
And to help you get started, here are some of the best home-buying tips that not everyone in real estate will probably tell you.
Ask Yourself: Is Now the Ideal Time for Me to Buy a Home?
See to it that you answer the question realistically and not just do it to feed your ego that you, of course, could buy one now. As mentioned earlier, don’t buy a home for a wrong reason. Don’t dare to own one just because you think everybody’s doing it.
Stay away from usual traps like lowest mortgage rates or even those rent-to-own home schemes. Remember that you should only buy a home simply because you really NEED it and of course, you are financially ready.
Friendly tip: Make sure you write down your answers. Some psychologists believe that doing so can help you condition your mind that could lead to better chances of making smarter decisions.
Determine What You Can Truly Afford
Since buying a home will have a significant impact on your finances, it is best that you know where you stand and how you would handle it. Keep in mind that you need to be realistic and focused on your allotted budget. Limit your options only on those houses that you could readily afford and not compromise your finances in the long run.
Believe it or not, buying a home is actually not an investment especially if you don’t pay in full. You shouldn’t consider it as something you can take some cash out and turn it into a quick profit. Because ideally, the house (on a mortgage) isn’t yours yet.
Decide What Kind of Home You Need Exactly
You can choose from any of the three major home choices: condos, townhouses, and detached houses. Though each has ideally its distinct benefits and drawbacks, you should go for the one that adheres to your lifestyle and priorities. Here’s something to help you find the right home. Learn more HERE.
Choose the Right Mortgage for You and Your Funds
Start figuring out as to which mortgage suits your finances. Though there are various options to consider, experts recommend two of the most common mortgage types: the fixed-rate or the adjustable rate mortgage. It’s actually up to you which one you’d settle for. Consequently, learning its qualifying guidelines, familiarizing yourself with the processes, and getting pre-approved should do you a big favor.
Initiate Some Financial Experiment
Considering a dry run as to how monthly costs regarding your supposed-to-be home purchase would turn out is a brilliant idea. Try to compute projected mortgage payment, tax and insurance estimates, home maintenance costs, and even HOA fees.
If you have actually done this right and everything fits in well, then you are fortunately relieved from the headaches of experiencing mishaps on your finances. Otherwise, you might want to reflect on readjusting your target home price until all of these costs become feasible on your current earnings.
Consider Paying the Prospective House in Full
This move lets you save more than you can ever imagine. Feel free to check this article about “cash home purchases” that presents detailed explanation as to why buying a home with cash is indeed the smartest choice every potential homeowner can make.
Paying your preferred home in full lets you have the power to eliminate loan interests, mortgage origination and appraisal fees as well as many closing costs. Just imagine the amount of money you’d save when you do this.
Indeed, buying a home for the first time can really be nerve-wracking and confusing if you basically don’t know where to start. But now that you have the right strategies and sufficient “weapons” to succeed on the battlefield, it should be less of a struggle. Never rush into buying a home. Definitely, it’s worth all the wait. Good luck!