Buying your first home may be a stressful process given the numerous factors and large sums of money involved. Preparations for the first time home buyer can be a messy affair and seeking professional aid might just be the thing you need to save you the anguish of having to sort through multiple things almost simultaneously.
From sourcing for a mortgage broker who can give you the best home loan to the type of house that suits your taste and fits your budget, here are a few points of consideration you should take into account if you are a first time home buyer.
- The Type of Housing
Be it a high-rise apartment or a semi-detached terrace, knowing the kind of home you desire can easily steer you in the right direction on where to look. Consider your family structure and possible future needs, various type of housing carry its pros and cons. However, what’s most important is that whatever you decide on, you and your family’s needs are met.
- Money Matters
Ideal home aside, how much money you are willing to set aside for your down payment and the type of home loan you are eligible for often affect the final decision. These are essential preparations for the first time home buyer, areas where mortgage brokers, like Multi-Choice, can assist you with. With your monthly income in mind, these professionals will be able to advise you on things like the type of mortgage you can take out and your repayment plan, just to name a few.
Apart from the type of mortgage, other financial aspects of this process include possible taxes and insurance that you may need to pay for. Certainly, this could vary from location to location but it is imperative that you look through your budget to ensure that there is enough for these extra payments.
Similarly, educate yourself on the financial aids and tax exemptions that may be applicable to you. Anything from government subsidies to grants offered by various authorities can come in handy when making such a big purchase.
- Speak to Experienced Realtors
Among the many preparations for the first time home buyer is the need for a reputable realtor to guide you through the laborious task of finding the perfect home for you. This person should be well versed in the features you desire in your future home and upon taking into account other factors like size, location, budget and type of accommodation, whittle down the list so you need not do it yourself.
More importantly, your realtor ought to have a good track record for real estate foresight. Will housing prices continue to fall? Is this location a profitable investment? Is this a good time to make your purchase? Apart from finding your ideal home, optimising your returns should also be part of their job too.
- Get Your Documents in Order
Once the numbers add up, and a purchase is certain, getting your documents ready is the next thing to do. After all, taking out a loan or even applying for any relevant permits is an administrative intensive procedure. Therefore, don’t leave things to the last minute.
Start digging up your credit record and go through them. If you spot a mistake, get it rectified before your loan application. Also, comb through your credit history to sort out any outstanding payments to ensure your credit worthiness.
Others things like bank account statements, tax returns, references and documents pertaining to any existing loans should be at hand and ready to be presented to your lender. Don’t be surprised at the amount of paperwork that needs to be done despite living in the twentieth century!
