Admittedly, owning a home is a joyous occasion in your lifetime. However, your experience may be marred if you fail to do the necessary groundwork. When buying your first home, it’s not uncommon to worry about important things like the paperwork and financing options. As a first-timer, you must carefully evaluate your thoughts before taking decisions. Therefore, observe these tips to make your home purchase successful.
- Know your needs and wants
Define what kind of house you want according to your needs and wants. For instance, getting a good property in the right location can take a while. Therefore, you should explore various neighbourhoods to determine the best fit for your family. You can also visit the property at different times to learn about its surroundings. This process allows you to discover your likes and dislikes about the home. What is the most impressive feature of the home? Are you ready to make some compromises? What are your big turn-offs? Answering these questions can inform you about your needs and wants, so feel free to consider this.
- Analyse your debt and income
Lenders attach importance to your debt level indicator metric DTI (debt-to-income) ratio, which determines how much debt you can sustain. It’s a good sign if your total monthly debt isn’t greater than 36% of your gross monthly earnings. According to the Consumer Financial Protection Bureau, your maximum DTI ratio shouldn’t exceed 43% when buying a home with a mortgage. Therefore, ensure you clear your existing debt or keep it under control before you start house-hunting. As a tip, try to pay off your student loan, instalment, and credit card balances.
- Make sure you can afford your mortgage
You can consider getting an affordable mortgage if you lack the cash to buy the property outright. However, you must ensure you can handle the property’s down payments. Depending on the kind of mortgage you are getting, you may have to settle about 5 to 20% of your home’s price before closing the deal. Your chances of getting a mortgage may hinge on your salary, credit score, and how much deposit you are willing to put down. It also helps to consider other factors, such as moving costs, attorney fees, and living costs, so keep this in mind. Consult an independent mortgage advisor for professional tips on navigating your home financing without stress.
- Conduct a residential property survey
To adhere to the best industry practices, carrying out an RICS survey is important. Experts certified by the Royal Institution of Chartered Surveyors (RICS) can assess your home’s current condition and point out any maintenance work that may be required urgently to improve safety. Your property surveyor will notify you about their findings and whether you need to hire experts like plumbers and electricians to work on the structure, so keep this in mind.
Getting your first home can be easy and fulfilling with the right strategies. Hopefully, you’ll consider those stated above for the desired outcome.