26 Dec
There are a lot of things to consider when becoming a homebuyer for the first time. Since a house will be one of the most expensive purchases in your lifetime, it’s important that you take time to consider things carefully to ensure that you get the most bang for your buck. The following information will help to ensure that you choose the best investment possible.
- What kind of mortgage can you secure?
It’s important to find how much you can qualify for in order to be able to purchase a home. The amount you actually qualify for may differ from what you have in mind as this will be based on various factors, including any current debt you have and how long you have been at your current job. As a general rule, qualifying for a mortgage will come down to good credit history, a record of paying bills on time and a debt-to-income ratio of 43%.
Keep in mind that it’s a smart idea to have a pre-approved loan in place before making offers on a home. There are several advantages to this, including the fact that it will tell a potential seller that you’re serious about purchasing their home.
- How much can you actually afford?
Although you may qualify for a certain amount of financing, it’s important to determine whether or not you can actually afford the house. Don’t overlook the monthly housing costs. This means taking into account the mortgage payments, property taxes and homeowner’s insurance. It’s also wise to ask for a record of the homeowner’s past utility bills because a large home means that your utility bills will go up.
A general rule is that no more than 28% of your income should be spent on housing. You also have to account for all of the costs associated with the house, including the house’s total cost, the down payment you can afford (typically 20% of the price of the home), renovation costs if applicable, as well as closing costs (typically between 2% and 5% of the total price).
- Don’t ignore the school district
When it comes to choosing a location, there are a lot of factors to consider. One often overlooked factor is the school district. Even if you don’t plan on having children, choosing a good school district can increase the property value of your home.
- Pay careful attention to the home inspection
Although a home may look to be in perfect condition, it is absolutely imperative that you to set aside funds to be able to do a home inspection. Not only will inspectors check for safety, but they will also be able to tell you about the quality of the home. This will save future headaches as well as unexpected and costly repairs. If problems do arise during the inspection, it is important to pay very close attention to them. Not only will this potentially save you a lot of money, but it could also be used to your advantage and enable you to secure the home for the less.
- Don’t overlook the aesthetic details
When it comes to purchasing a home, the aesthetic details are just as important as the structural ones. It’s important to ensure that any renovations to the home were professionally done and that quality materials were used, otherwise the seller could have simply done a cheap fix in order to make the house visually appealing. However, this will ultimately end up costing you more time and money in the future when the cheap materials give out. If you don’t feel confident in assessing these details, it can be a good idea to set aside some funds to have a professional do it on your behalf.
- Check future building plans
Before you purchase a home, it’s a wise idea to inquire about any future building plans near your home as this may influence whether or not you actually want to buy the house. For example, it’s possible that the quiet neighbourhood you picked is going to have a skateboard park added to it in a few months. This would mean that a lot of children and teenagers will be in your neighbourhood and make it a lot more noisy.
- Don’t overlook the landscaping
Landscaping can add up to a significant amount of money. If your budget doesn’t include landscaping at the moment, ensure that the current landscaping is up to par so that you don’t feel the pressure to overextend yourself.
One of the most important things you can do when it comes to buying your first home is to find a loan option that is personalized, flexible and that works for you. If you’re looking to buy a home, Mortgages, Mortgages, has a range of mortgage options. Contact us today for more.