5 Tips for First-Time Home Buyers

Hi everyone. Today I found a great article in nasdaq.com that I know many of you will enjoy reading or possibly relate to. The original article can be found here - https://www.nasdaq.com/article/five-tips-for-firsttime-home-buyers-cm641283 - if you’d like to read the article there, or I’ve pasted parts of it here to share it. It’s well worth a read.

When you’re buying a home for the first time, it’s easy to get excited about the future and lose sight of some crucial things that need to be considered. 

While perusing the housing market, follow these five tips to avoid making some common rookie mistakes.

Make a Wish List

When you decide you’re ready to buy a house, it’s easy to get swept up in the excitement of the whole experience.

One of the first steps you should take is to compile a wish list of features you want your future home to have. Your list may include a certain number of rooms, a spacious backyard or a modern kitchen with an island.

Having this list will help you and your realtor narrow down available houses to just the ones that have what you need, including your “must-haves,” so you don’t waste time looking at residences you know won’t work for you. However, it’s important to note that homes are rarely perfect and equipped with everything on your list, especially if said list is an extensive one. Make sure you know which things you can compromise on, and which are non-negotiable.

Stay Within Your Budget

Plan for the mortgage payment you can afford now, and don’t go outside your comfort zone because you believe you’ll be making more money thanks to a promotion within the next year or two. Overspending on a home can lead to financial problems for years to come, so decide on a budget and stick to it.

It’s often a good idea to set your budget on the lower end of the spectrum because most houses will require some form of maintenance and repairs prior to moving in.

Once you have the number in mind, tell your realtor. He or she can sift through listings that fall within your budget so you don’t fall in love with a home you can’t afford.

Don’t Forget About Extra Costs

Some first-time home buyers may forget about expenses, such as closing costs, Homeowners Association fees and property taxes. Be sure to leave plenty of room in your budget to accommodate these payments.

These expenses vary by home and location, but can add up quickly.

Before You Put in an Offer…

Before putting in an offer on your first home, don’t forget to arrange a home inspection and draw up a contingency clause.

You could fall in love with a home only to find out that electrical wiring is a significant fire hazard or that the foundation is shoddy. These types of problems are often revealed during a home inspection and can cost a pretty penny to correct. A home inspection can notify potential buyers when it’s time to walk away from the house or to pursue the purchase.

A contingency clause can protect a buyer in various events, such as losing your job and no longer being able to afford the loan. Talk to your realtor about what to include in a contingency clause so you can get your money back if something goes wrong.

Don’t Skimp on Insurance

When you get a home loan from a lender, you’ll be required to secure insurance coverage for the property. And when it comes to insurance, the bare minimum just won’t cut it.

For your home, you’ll need coverage for the structure of the building and liability protection. These coverages can kick in if your home is damaged or destroyed due to a covered peril and needs to be repaired or rebuilt or if someone is injured while on your property and needs medical attention.

Getting the bare minimum coverage could ultimately lead to you having to pay more money out of pocket if something bad happens, which could lead to financial hardships. Talk to your insurance agent about the amount of structural and liability coverage that best fits your new home in order to adequately protect it.

Don’t Get Swept Away With Excitement

Buying your first house can be a whirlwind of emotions: excitement, frustration and stress. But keep your head on a swivel so you don’t make any careless errors during your search.

Happy hunting!

This author seems to write some great stuff and well worth following.

If there is any other info you’d like me to search out and share in the world of Legal Services then please let me know. Or, if you have any other pressing needs in my area, feel free to reach out on (0295) 686 266 or visit www.cmlaw.com.au.

Thanks,

Alex