It can be exciting when the time finally comes where you can afford to purchase your first home and now you are wondering where and how to start. There is a standard home buying checklist that you may want to consult before evening contacting a buyer’s agent or entering the real estate market in any way. Each of the steps listed below are very important for a prospective home owner to review before jumping into this big step in anyone’s life.
1. The most important first step is to of course take the time to consider whether home ownership is the right step for you. You need to consider the funds you have available not only for the down payment but for the mortgage payments to come, your average monthly income and the other bills that come along with a new home.
2. Buying a home consists of many costs that new home owners are not aware of like big down payments and closing costs that are generally a surprise. Once these payments are completed you will have to buy furniture and have higher utility bills as well as the general upkeep of the home that needs to be calculated into your finances as well.
3. Getting yourself pre-approved for mortgages before you even begin your house hunting search is a vital step to take. Many times new home owners find their new home and then cannot find a bank that will approve them for financing, of course they lose the home in this case. This will give you an idea of how much you will be approved for and therefore the price range of your new home.
4. Always consider the type of home you are looking for and how or if it fits into your decided price range. Many cities and metropolitan areas offer a wide variety of homes to choose from so this is an important decision that needs to be done before you begin searching.
5. Always consider the location of the home you are interested in buying. The neighbourhood is very important because this is where you will be living and if it is not clean or looks unsafe you will not be comfortable in your new home even if it is picture perfect.
6. Always find a qualified and professional buyer’s agent to help you make these important decisions and point out the benefits and disadvantage of the homes you view.
7. Have the home inspected before buying it, this is a must. A home inspector costs about $100 but they can find anything from mould in the walls to a bad roof to help you save money in the long run.
After going through this helpful checklist you should be more prepared to enter the world of home buying. The last thing you want to do is buy a home and then find yourself bombarded with bills and debt because this can bring on a great deal of anxiety and lead you down a path of decisions that have not been thought through. Enjoy your first home, but make sure you are financially prepared as well.