Everyone dreams of owning properties but buying a house is more of a necessity than a want. Not many people understand the gravity of the situation as it may compel you to invest a majority of your savings in it. Property investment requires careful research, extensive planning and saving. And so it can be quite a daunting task for first-time buyers. However, there are ways in which you can prepare yourself better and make the most of this opportunity. Here are a few helpful suggestions that all real estate buyers should take into account to make the process a lot easier.
Decide on the budget
This one is a no-brainer as the first thing an investor should figure out is how much he can spend. It is very easy to show up for the viewing of an expensive villa, fall in love with it and then go back home just to realize that you can’t afford it. It would be foolish to waste time on properties outside your price range. Calculate your budget by figuring out how much you can spend on mortgage each month. Note down expenditures and observe your savings. Before you reach a mortgage amount, think of the monthly principal, taxes, interest and monthly insurance payments.
Keep your wish-list realistic
The key is to keep it realistic. Based on where you wish to live in and the housing budget you just came up with, start compiling a list of what you want in your first house. Begin looking around at houses to find out what are the facilities available within your price range. You can also check out the popular real estate portals and explore what you can get. Remember to give more importance to your needs first; you can splurge on the luxuries later on.
Get approved for home loan
In the real estate sector, many deals fall apart because buyers don’t get approved for home loans very easily. So there is no point finalizing a deal without getting the thumbs up from the bank. In fact, you should get pre-approved for a mortgage even before you begin searching for a house. Go to three to four different lenders and find out what they can offer and at how much interest rates. Compare different lenders and pick the one most suitable for you. Financial institutions like banks evaluate your financial standing and then issue the letter saying how much they can lend you.
Hire a professional home inspector
Just like you need a good real estate agent, you also require a good home inspector to aid you with the process of real estate buying. Home inspection is always useful as it can help you determine the real worth of a property and even help you save huge money in the longer run. So start asking around for referrals. You can also ask your property agent to suggest someone. Once you have compiled a list of potential home inspectors, you can then begin interviewing them.
Determine the true costs
Most first-time buyers tend to overlook the fact that if they don’t make a careful purchase their lives after closing may be a little different. As a property buyer, you must not forget to count in the hidden costs that shall start only after you shift into the house. Other than the mortgage payments, you will have several other expenditures like taxes, residents’ welfare association fees, insurance and maintenance. So beware of spending all your money on the mortgage amount as there will be other expenses too.
Hope the above tips will help you make a smarter buying decision and allow you to buy a house that you love and can also afford.
Author bio: Devika Arora is a prolific writer who compiles relevant facts and analyzes the current state of affairs pertaining to varied domains, including the Indian real estate sector.
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