It’s a huge achievement to own your own property. Alas, part of what makes it such an achievement is that it’s not something that’s easy to do. If you’re going to get your hands on a set of keys, then you’ll need to prepare for a long and arduous journey, one that involves plenty of time, energy, and money. In the end, you’ll hopefully find that the effort was worth it. While it’s not easy to own a property (without rich parents, at least), there are things you can do that’ll make it more straightforward. In this blog, we’ll look at some handy tips that should put you on the right path.
Understand Your Motives
To begin, think about your motivations for buying a property. Some people go through the process of getting a home because they feel like they “should” buy one. But home ownership isn’t for everyone. It might be that, in the long-term, it’s best for you to keep on renting. This is true especially in areas where home prices are high, such as around New York and San Francisco. In those areas, it’s nearly always best to rent because the process of getting a house can be so complicated. However, if you’re determined to become a homeowner, then you’ll know that it’s the right thing to do.
Are You Ready to Commit?
There are many advantages to becoming a homeowner. But there are downsides, too. For example, you’ll have to accept that you’re losing some of your freedom. You’ll be free in other ways (no more rent!), but in terms of being able to move, that’s gone. So it’s a good idea to really ensure that you’re ready to settle down and commit to the area in which you’re looking at. You will be able to move in the future, of course, but at a minimum, you’ll be looking at at least a few years and more like 7 - 10 before you can up sticks and move somewhere else.
Focus on Your Credit
Your credit is going to be hugely influential in your house-buying journey. It’ll all be much easier if you have good credit. When you decide that you’re going to buy a house, it’s best to do nothing that will influence your credit score. That means avoiding taking any new lines of credit. The best thing you can do is carry on paying your bills just as you’ve always done. Mortgage lenders are always looking for reliable individuals. Even if you had the opportunity to take out a new credit card or another line of credit, it’d be best to leave it to one side, just in case it has any impact on your score.
Get Saving
The more money you have saved up, the easier it’ll be to get on the property ladder. Indeed, it’s probably the single most influential factor. If you have a savings account with tens of thousands, then you’ll be in a stronger position to pay a handsome downpayment and keep your mortgage costs as low as possible. If you’re reading this article, then we’ll have to assume that you’ve already got some money saved up. Could now be the time to really ramp up your savings goal? It can sometimes be worthwhile waiting for another year to buy a property to give yourself additional time to save some money.
Learn About Mortgages
Unless you’re in a very lucky position, you’ll be taking out a mortgage to pay for your property. And as you might expect, not all mortgages are the same, indeed, there are many different types available. Before you begin looking at properties, it’s a good idea to spend some time reading about mortgages, including what you can expect to pay each month based on the amount of money that you’re looking to borrow. This will give you a clearer understanding of what you can afford to buy.
And Overall Costs
Remember, however, that your mortgage won’t be the only payment that you’ll be making related to your property. In fact, in many cases, they’re just the starting point. You’ll have to spend more money on things such as attorney fees, homeowners insurance, taxes, appraisal fees, and more. You should factor these costs into your calculations when you’re working out how much you can afford to spend. Plus, when you’re looking at homes, you should also think about how much money you’ll need to spend to get the house into a livable condition. Some properties are ready “as is,” but if you’re buying an old or rundown property, you’ll need to think about the money you’ll need to get it into shape.
Check If There’s Help Available
As we mentioned earlier, it can be a challenge to get onto the property ladder. If you don’t have unlimited resources, then you may find that the costs associated with buying a home are simply too much. However, before you lose hope, it’s a good idea to check that there is any help available to you. There are many home buyer programs, such as the Hometown Heroes program, that can help you along your journey. It’s a good idea to do some research to see what help is available in your state or city. You might just find that it’s the difference between putting your dream to bed and making it come true.
What Do You Need?
And now comes the fun part, finding somewhere to live. Well, we say it’s the fun part, but it can be a little bit of a nightmare if we’re honest. Once you begin searching, you’ll find that there are many homes out there, but not all that many quality homes. Before you begin searching, it’s a good idea to have a clear idea of what you’re looking for. You should divide these qualities into ‘needs’ and ‘wants.’ Needs are things that your house absolutely must have (say, three bedrooms). Wants are the things that you would like your home to have (say, a large yard). When searching, discount anything that doesn’t meet all of your needs. They’re not for you. If you find homes that have all your needs and some of your wants, then you’ll be on the path towards finding the right property.
Another point: when you are thinking of what you need, don’t just think about what you’ll need today. Think about what you’ll need further down the line. If you’re planning to have many more kids in the next couple of years, then a two-bedroom place won’t cut it, even if it’s perfect for your needs right now.
Work with a Reputable Real Estate Agent
A good real estate agent can make a huge difference in your home-buying process. As you’ve probably gathered by the general tone of this article, getting your hands on a property can be a time-consuming and challenging process. As such, it’s highly recommended that you work with people who have an in-depth understanding of everything that you need to do, as well as of the local market. Keep in mind that not all real estate agents are created equal, some are great, and some are not so great. Read reviews before agreeing to work with an agent or get a recommendation from friends and family.
Visit at Least Five Homes
There’s no magic number of how many properties you should visit before agreeing to purchase one. But we think five is pretty reasonable. Of course, that’s just a minimum. In all likelihood, you’ll end up visiting around ten or more over the course of a few months. It’s recommended that you visit other homes even if you feel that you’ve found the perfect house for you on the very first visit unless it’s time-sensitive (i.e., many people want to buy the home). You might get taken away by a dream when you first see a place, but if you have no concept of what else is out there, then you’ll be increasing your chances of making the incorrect decision.
Look Closely At Homes
It’s easy to take a look at a home at a surface level and fall in love. But what about what’s going on below the surface? It can be extremely useful to look at a potential home with your head and not your heart. Don’t disregard red flags just because you love the size of the yard or the front door. This is another area where it can be valuable to work with a good real estate agent since they’ll be able to give you an honest assessment of the property, pointing out things that you may have missed.
Stick To Your Budget
Finally, be sure to stick to your budget. It’s very tempting to go over your budget if you find a house that you love. But remember that you set the budget for a reason. The love you have for that slightly more expensive property may diminish, but you’ll be stuck with the cost if you buy it!
