A home provides security, warmth, and comfort. As beautiful as that sounds, the process to buy your first house can be really daunting.
Luckily for you, you don’t have to do it blindly. This article below will explain steps to buying your first home.
Steps to Buy Your First House
Over 80% of people globally aspire to own a home at least once in their lifetime. When that moment arrives, checks start to fly in all directions and you end up regretting your decision.
But what every homeowner comes to conclude with this process is that the journey was totally worth it. If you have been looking forward to being a homeowner, dig deep into this article and how to go about buying your first home.
1.Reassure Your Decision to Buy
You have been thinking about buying your first house, yes. But what if you’re not ready? Regrets come around after some time. Probably because you succumbed to peer pressure or just pressure from your family without actually having a plan for it.
Owning a home has its costs, you will be required to pay all your bills individually, pay your taxes, your utilities plus upkeep. All repairs and maintenance that used to be taken care of by the landlord now become your responsibility.
The decision to buy doesn’t end when you sign papers to the contract. You have to look at the big picture and reassure yourself that you can actually maintain the home.
- Create a Plan
When you’re all set and completely assured that in fact, you want to be a homeowner, a plan is the next best thing for you. Place all your cards on the table and decide the budget under which you lie.
The rule of thumb at this point is to settle for what you can afford. There’s no reason to be a homeowner who has numerous debts. Ensure your income can sustain all you plan to do with the house. From the purchase to transport, designing, and maintenance.
Statistically, the best home calculator will give you a rough estimate where you’re only expected to spend 15 % to 25 % of your income on your home. Anything more could mean that you will be living a hand to mouth situation which could cause you regrets.
- Get Ahead and Your Finances
While a plan is in place, the necessary funds have to be provided to start off the process. A first-time buyer may not really understand what goes on when you take out a mortgage for the home. Different rates will apply depending on your needs and affordability.
It would be the best time to consult with your bank, credit unions and other sources. There’s also a helpful page for those with bad credit. You will be allowed to take out loans of substantial amounts to help you take charge of your finances.
Decide on the kind of mortgage you want for your home, in terms of days of payment or the amount, what loans you may take out and other financial advisory services you can use as you buy your first house.
- Decide on the Location
It will all depend on where you want your new home to be located. Close to the city may be a beach house, suburban house or in the middle of Manhattan. This is a very important decision for you as there are other factors that may be affected by this decision.
Think about the close proximity to certain places of choice. Probably where you work, your neighbors, the environment, school, church, and others. There is no point to invest in a good home while you still pay heavy transport costs.
The location could also affect the value of the house seeing that close to the city could be more expensive than farther away. This is attributed to the advantage of readily available products and services.
- Carry Out an Inspection
There are many factors to look out for when you are buying a first home. For first timers, you will have to remember that unlike other housing solutions, your own home allows for freedom but that only means you cater for repairs yourself.
Check on the waste and garbage area, water supply in the area, adequate lighting, the type of foundation, and security in and around the house. Carry out surveillance and conveyance checks to ensure that you will get your money’s worth.
A realtor, surveyor or agent could take up the inspection by themselves but you should accompany whoever is checking in the home.
- Escrow Process
After settling on a bid for the home, the escrow account will be set up to secure funding and ensure proper fulfillment of the contracts. One will be required to take heed of all the details included in the agreement or no funds will be released nor will the house be sold.
With escrow accounts, the process is long due to the prescribed contract that has to be adequately filled and fulfilled before any further questions.
Once all the details have been finalized, contract papers will need to be signed to ascertain the sale of the home. You are now the owner of the home and all that is left is for you to move in.
- Move In
Get the movers and be on your way to a new home. Do some miscellaneous changes to your home like changing your address with important accounts such as the bank and other financial institutions.
The move is the most exciting part of it all. All the funds get released while the home gets a new owner.
Grab the Keys to Your Home
How amazing would it be if you could skip all the arrangements and just jump right into your new home? Especially for the first time, that thrill and excitement could die down once you start to realize all the effort that goes in when you buy your first house.
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