Negosentro.com | by Eric Reyes | 8 Things You Must Know Before Buying Your First House | Buying a house can be an overwhelming affair for a first-time homebuyer. There are many issues involved, such as identifying a realtor, a financier, signing contracts, and eventually committing to pay it off. If you are looking to make an informed decision before making the purchase, consider the following eight tips;
1. Think about the Commitment
Buying a house comes with a tonne of commitments. This does not mean in terms of the mortgage requirements alone, but it also extends to other matters such as neighborhood regulations and the perennial property taxes. If you are buying the house with a spouse, you should consider what the law says about distributing wealth, property, and liabilities, such as a mortgage. In most cases, the division is equal to both parties. If you don’t want this to be the case, it would be wise to involve a lawyer and get everything in writing. Similarly, if you’re going to commit yourself to service a home loan, consider whether your job is long-term.
2. Use a Trusted Realtor
When buying a house, you may need to get a realtor with a good reputation and reviews. Realtors who have a reputation to keep often tend to reveal all relevant information to buyers to make an informed decision. Besides, such property managers can give you a variety of options while trying to remain neutral. Real estate companies such as Shield management can offer such information since they deal in both sides of the property trade (buying & selling). Additionally, their reviews can help one to understand how the company conducts its business transactions. Such attributes can help one to understand the real estate market and its participants in a better way.
3. Don’t Buy the House for how it suits you Today
Remember, your first house will be one of your most significant financial commitments. You may spend several years while paying for it and living in it as well. In such a case, it would be best if you considered your marriage prospects, the possibility of getting kids, and whether you might want to stay at your current job for the long-term.
4. Consider other Loans and Responsibilities
If you have a student loan, you may need to repay it along with your mortgage. In many cases, student loans are treated as real loans, and this may go a long way into affecting your credit score. If the mortgage takes a large portion of your income, you might not end up having the financial flexibility of engaging in other businesses and activities.
5. Ask Questions
If there is something that you do not understand in the process, do not be afraid to ask. Buying your first house will undoubtedly take up a lot of your resources. You might need to understand that buying a home is not the same as going to the store and trying out new things to see which one works. In most cases, people live in their first house for a large part of their lives. For this reason, you do not have room for trial and error; therefore, get into the contract knowing well what you are getting into.
6. Buying a House involves Making a Contract
Buying houses involves signing a lot of papers and contracts. Even though this may look standard, remember that contracts are all about arrangements and agreements. Such a deal involves a buyer and seller, and therefore if you don’t feel okay with specific clauses and obligations, negotiate before you sign it. Ensure that the deal favors you as a buyer.
7. Compare Different Mortgage Lenders
Before you settle on who your mortgage lender will be, you may need to look around for what different lenders have to offer. As a new buyer, you may need a lender who understands you and treats your case individually. In the end, you both benefit from the deal. So, don’t settle for an agreement that does not suit your needs. You may also find out that different lenders offer different rates; if you find a lender who offers reasonable rates, you might end up saving a lot of money.
8. Consider the Total Cost
When buying a house, many people tend to look at the price of the home alone. However, other than the price, there are other additional costs associated with the purchase. In most cases, those extra charges can account for up to 10% of the price. Failing to scrutinize all cost aspects can put you at a disadvantage.
About the Author:
Eric Reyes is a passionate thought leader having been featured in 50 distinguished online and offline platforms. His passion and knowledge in Finance and Business made him a sought after contributor providing valuable insights to his readers. You can find him reading a book and discussing current events in his spare time