10 Quick Tips for First-Time Home Buyers
August 3rd, 2020
Everybody dreams of buying a house of their own. It brings a huge sense of accomplishment in one’s life to have a property to their name. Further, having a real estate possession is always a wise and safe investment for the long run. However, if you are buying a house for the first time, it is very easy to get intimidated. Purchasing a house comes with a wide set of complexities and difficult decisions. So, to make your life easier, here are 10 quick tips to help out first-time home buyers.
Make sure you have an emergency fund and no outstanding debts
It is important to be debt-free before venturing into real estate. Owning a house is a costly investment. Hence, clear all the outstanding loans to your name. After purchasing the house, you may need to spend money on furnishing, maintenance. For this, a substantial emergency fund must be set aside from the get-go.
Decide on the kind of house you want
You must decide on the kind of house you want to settle in. It might be an apartment, an independent house, a villa, a studio apartment. This decision is based on your family size, place of work, needs, budget and other factors.
Plan a budget and stick to it
Always spend as much as you have. To ensure that your home purchase is sustainable in the long term, you must have a stipulated budget. You should evaluate your source of income, existing assets, and financial condition first. Accordingly, you can compute the affordable figure of investment. Once the budget is decided, you must stick to it and not overspend.
Set aside the money for a down payment
In case you are availing of a home loan for your first house, it is advisable to have a down payment amount ready. This gives you a head-start for repaying your debt. It also gives you brownie points while securing a home loan from a reputed bank. Further, it also saves you from the hassle of mortgage insurance.
Have enough for closing costs
Closing costs of a house are just as important as the purchase costs. They include:
- Home inspection
- Credit report
- Home insurance
So, make sure you have enough money saved to cover these expenses. Well-executed closing processes guarantee the longevity of your lovely abode.
Monitor your credit score and ensure a preapproved loan
Being pre-approved for home loans shows your drive to get a good house. A good credit score is crucial to avail of a home loan. As a first-time house buyer, it is only natural that you will look for credible loan facilities with affordable interest rates. So, a CIBIL score of 750 or more is a must for getting a home loan easily.
Scour the on-sale market for a house suitable to your needs and budget
Once all the financial hurdles are dealt with, comes the house hunting part. Hiring a reliable realtor is the first step. Then, you can assess the on-sales houses to find the perfect fit for your needs. Conduct a comparative analysis to narrow down your options.
Survey the locality and neighbourhood of the house options
Everybody wants to reside in a safe neighbourhood. Before buying a house for the first time, visit the area at different times of the day to assess the locality. Also, ensure that essential amenities like grocery stores, schools, medicine shops, and transportation facilities are available.
Zero in on your dream house and confirm closing costs
Once you have chosen your dream home, it is time to go full steam ahead with the purchase decisions. Consult your realtor regarding all closing costs. Prepare your funds accordingly. Finally, talk to the builder or house owner for purchase formalities.
Examine all relevant purchase documents
Last but not least, a first-time homebuyer must pay attention to all legal documentation. The house blueprint, loan documents, purchase contract or lease agreement must be examined well. Only then, the final purchase should be finalised.
Housing projects with Adarsh Group is the one-stop destination for all first-time home buyers. Here, you will find homes with world-class amenities like swimming pools, indoor games centre, and gyms.