Buying your first home can be an amazing experience, but also a fairly tricky and complicated process if the correct research is not done. This is probably the single most important investment that you will ever make in your life which means that you cannot go out on a whim to purchase a home. There are many steps that are involved in the home buying process, but even before you begin looking at properties, you will have to realize the financial considerations. These financial considerations can be discussed with your banker who will help you to understand just how much you need to buy a home, explain the mortgages and loans and the other financial aspects of buying your first home.
Setting up a Budget
You want to begin your first time home buying experience by setting up a budget. This budget will help you to determine all of the costs that are involved in purchasing a home, including application fees, solicitor’s costs and other fees associated with the process. If you think about purchasing a home for $500,000 then you will need to know how much of a deposit is needed on such a home and how much the actual loan will be. If you have set $500,000 as your total budget, the home that you purchase may be significantly less simply due to the added extras that are often ignored or forgotten.
Location, Location, Location
Once you have set your budget, it’s time to start making a list of the criteria your new home needs to meet. One of the main things to consider is whether you are going to buy in your area or move somewhere else. Many say the location of a home is everything. This is true for many reasons, including if you want to be amongst the action, or whether you like a bit more space around you. If you live in a metropolitan area, this will also affect the price point of the property. If time is precious and budget isn’t too much of an issue, then look at areas close to where you spend much of your time (i.e. work). However, if you are on quite a strict budget, are happy to spend some time in the car or on public transport and love that bit of extra space, look to the outskirts of your town or city to buy your home.
Build vs. Buy
In many cases, first home buyers will often neglect to explore their full options. There are many perks to both building a home and buying a pre-existing property. When it comes to buying a pre-existing property, you’ll be able to move in almost immediately, however you may encounter some structural problems such as sagging foundations, which can be costly to repair.