Buying your First Home

IF YOU have a steady income, and you already own a car, then buying a house is the next important milestone. To some people buying a house may signify financial success, it also allows you to exercise your independence as an individual, or as the head of a family.

However, to some people, it may seem like a complicated process. If you are new at buying a property, here are some ideas how to make a good decision.

STEPS

1. Save for the down payment. Buying a house implies making one of the biggest financial investments of your life.

Apart from having a stable job in hand and a good credit history, you need to have saved up enough money to pay the down payment for the house.

It is also advisable to start reading about how exactly mortgages work. To choose the most suitable loan, you must first know the structure, laws, terms and conditions, associated with each of the available options.

2. Only buy a property you can afford. There is a rule of thumb out there that says you should only buy a home that runs roughly two-and-one-half times your annual salary.

There are many online calculators available that can help you get a handle on how expensive a home you can afford.

These calculators will give you information on how your income, debts, and expenses can affect how much you can afford to spend on your new home.

3. Research the mortgage. There is a wide range of mortgage options available for home buyers. Make sure that you research all the options thoroughly and make a sound decision.

Check the exact length, interest to be accrued and monthly payment for each mortgage option. A good research would save you from making a wrong choice.

4. Buy a home that you will love tomorrow. Buying a home is an investment and takes some time to mature, so that you can reap the benefits.

While choosing a house, make sure to select the one that will work for not only your current needs, but also for your future needs.

For instance, going for a house with additional rooms may not seem very important to you at first, however in the long term, it can be a worthwhile decision.

You may want to extend your family in the future, and you may need an extra room for the kids. In short, if you do not want to keep jumping from one house to another, choose a house that you can stick around with for years.

5. Do research. Visit a few open houses to gauge what's on the market and see firsthand what you want, such as overall layout, number of bedrooms and bathrooms, kitchen amenities, and storage.

Visit properties you are interested in at various times of the day to check traffic congestion, available parking, noise levels, and general activities.

What may seem like a peaceful neighbourhood at lunch can become a busy place during rush hour, which you will never know if you drive by only once.

6. Pick a good school district. Whether or not you have kids, you should always buy a home located near a good school.

When it comes time to sell your property, being located in good area with proper amenities will help boost your property value, and may be advantageous if you decide to sell.

7. Find an agent. All prospective homeowners are better off using professional real estate agent as there is so much involved, that it can become overwhelming.

A professional realtor can help you with a variety of issues that will surface during the purchasing process.

Find an agent who is familiar with your target area, and who is well-versed in all aspects of evaluating properties and negotiating contracts.

TIPS

Home Buying Tips

* Calculate your current household expenses and income and get prequalified for a mortgage. Prepare and plan before buying a house so that you do not receive any major surprises later on.

* Determine your family requirements. What do you want in the rooms? Do you want large bathrooms or compact ones? Do you need a garden? Do you need home gym or swimming pool, etc.?

* Map the location that fits your requirements, and mark the houses that you are going to visit.

* Find a realtor. Realtor is the mediator between you and the seller. He will play a crucial role in getting you the right deal.

* Always check the years of experience in the business, the number of clients served, and your own specific requirements before choosing the realtor.

* Before visiting any house, just pass by to see its appearance from the outside.

* Never let your emotions get in the way of buying a home. Be as realistic as possible by doing a thorough research before making a commitment.