Buying your first home is a major life step, and (understandably) can be quite a daunting prospect. So we’ve provided some tips below to help ease concerns of first home buyers. When you’re fully equipped with as much information as possible, you can move forward with your plans confidently.
Here’s a checklist to help you prepare for buying your first home.
- Be financially ready.
Get your finances squared away. Check your credit rating and talk with a mortgage broker or banker to understand how much money you’ll need upfront. Take a look at your cash-flow to figure out how much you can reasonably afford.
- Calculate every cost.
It’s not just the down payment and mortgage payment. Factor in all the hidden or forgotten costs, like homeowner’s insurance, property taxes, estate agent fees, closing fees, utilities, and maintenance costs. It adds up and may end up being more than you had originally anticipated.
- Determine where you will be in five years.
It’s important to know where you are in your life cycle. Take a look at your current relationship and career status. Think about where you might be in five years. Will you need enough room in your new place to start a family down the road? Are you comfortable in your career? Are you expecting to be transferred to a new city anytime soon? If you’re not planning on settling down and sticking around for a while, it may not be the right time to buy.
- Focus on the right things.
It’s easy to get caught up on the little things like the color of the walls in the living room or the kitchen appliances. Remember that so many of the little things (carpeting, decor, countertops) can all be changed. Take a look at the things that are harder or impossible to alter: the number of bedrooms, school district, space in the backyard. Think about the bigger picture when looking at homes.
- Know your neighborhood.
Figure out what sort of neighborhood you want to live in. Do you want a downtown feel or are local parks and good school districts more important to you? Try to visit the neighborhood at different times of day, if possible. Talk to your future neighbors to get a better feel for your surroundings and what you’ll be in for when it comes to noisy pets, utility bills, safety, etc.
- Be ready to move at a moment’s notice.
You’ve found your dream home. You have the money. Now be prepared to act fast. The perfect house is going to sell quickly, and you may not want to take too much time to mull over the offer.
