10 Tips to Help First-Time Home Buyers
While you buy a property, you are not simply providing a cheque to the seller and obtaining the keys. The process of selling and buying real estate is complicated and often a lengthy process. The selection process will actually walk you through various steps right from the beginning till end.
In the past few years, the potential investors and home seekers are constantly facing problems in buying commercial and residential properties in Srikakulam. Though you may think, buying a property for sale in Srikakulam is not at all a daunting task. However, there are certain factors that should be considered to make the best bet on properties you purchase in this popular town of coastal Andhra.
Most home buyers struggle a lot when they are looking forward to buying a property. The main reason is that most home buyers have limited knowledge about the latest property and are unable to understand about the dynamic market. The challenge of buying a new home with the lowest price range, extra features available at home and many more will be a daunting task. For demystifying the process of buying a home, you need to get adequate knowledge on many different things in buying a property.
Why Should You Buy a Home?
Before diving into all that needs to be considered while buying a home, let’s first have a look at the importance of buying one. There’s no doubt that purchasing a home eats up a huge chunk of your savings. But is that massive expenditure worth it? Below are certain points which might suffice the needs of the question raised.
Let’s start by catering to our emotions. Buying a home equates to owning an extortionate asset for lifetime. It gives a sense of security to the owner. To possess a space in this giant world which you can call your own is indeed a blissful experience.
There will be no lease agreement to terminate in a certain span. So, no worries. Besides , you will not have to pay rent every month which graduates up in the scale, every passing year.
Unlike rent, where you spend a part of your budget but do not get anything in return, buying a home can fetch you a vital return for paying the loans. Every time you pay the EMI, you build up equity for your home. This means your ownership stake in the house goes on increasing with every payment you make.
Fixed rate mortgage being the most common type of mortgage brings another opportunity for those who buy homes by obtaining a mortgage. Suppose you choose a 10 -or 20-year fixed rate mortgage, then for those many years your monthly payments remain constant. This will contribute towards an easier financial management.
Since buying a home has always been a big burden on our pockets, tempting tax breaks have been introduced to facilitate home ownership. Homeowners can claim a deduction of the interest and principal of the loan to be paid to a certain extent.
Buying a home in a carefully chosen location increases the benefits of the purchase multifold. The cost of your property will never remain constant. It will go on escalating in the coming years. Therefore it can be safely said that once you invest but you go on becoming wealthier with time.
Having said that it must be kept in mind that the more you delay the plan of purchasing a house, the more investment you need to make. You must have gotten convinced to buy a house after reading the above points.
So, tweak your budget, pick a judicious home loan lender who can tailor your EMI as per your income pattern and consider buying a home seriously. But before you do that there are certain things to be taken into account. Here are top 10 tips for the first-time home buyer:
Know What You Can Afford:
When you are looking for a better home then make sure you search in an effective manner. It is necessary to calculate carefully all the monthly payments that include the property taxes, homeowners insurance, insurance premiums, association dues and many more.
Identifying The Potential Down payment:
The target purchase price is most important for the down payment. Considering the industry norm for the purchase of a property will be useful to get adequate idea about the property. There are also numerous loan programs available with many different credit levels.
The down payment for a property must be made less than 20% for buying the property at an early stage. The tips for first time home buyers will be useful for making your home purchase into a better one while saving more money.
Inspecting The House:
It is crucial to inspect the house that you are purchasing. Checking the property will be useful for you to know all the interior and exterior facets of the house. You need to look for the damages, if any, present in the property so that it’s easier to know beforehand if it is worth buying or not.
When you are visiting a home, there are many things to consider before choosing a perfect home for your family. Nowadays, earthquake resistant designed buildings are made so that we can check for a property with the suitable infrastructure. The main goal of the earthquake resistant construction in today’s time is to erect the building walls in a way that reduces the damage during the seismic activity.
Work With Local Agent:
Connecting with a real estate agent will be more useful to know more about your dream property. Make sure that your real estate agent has experience and insight about the local matters such as latest developments, schools, taxes and many other such issues. The home buyers must know that their property has a better market value before purchasing them.
The location of the home is most important given the significance of major connectivity. Normally the price of the property will vary as per the location; hence, you need to buy a home accordingly.
Evaluating The Preferred Neighborhood:
How much do you really know about your neighborhood? You can visit the area during the weekdays, weekends or anytime you get to know about the traffic, people and more facts about the neighborhood.
Checking the price of the property is important and so is making the decision in the same breath. Comparing the price range before a home purchase will be useful to get valuable insight on its market price.
Check for any legal issues on the property in order to avoid future problems. Making a secure down payment will be useful along the long way to enjoy the features.
How much Money is Involved:
Make sure the total money is invested only on the property; so understand your means to buy the property via its monthly payment options.
Important Steps in The Buying Process
The next step is to start searching on MLS (Multiple Listing Service), commercial sites, direct mail, classifieds and many other available avenues to check properties for sale. You would probably come across a real estate agent at this point of time since they are typically free of cost for the buyer.
In case, you are directly dealing with homes which are not listed at the MLS, then you can directly deal with the sellers themselves.
Making Offer On The Property:
The next step in the buying process is providing an offer on the property which you need to pursue. You may provide less than what you actually wish to spend or may provide your bottom line. Normally, an offer is made with a purchase and sale agreement that your real estate agent will perhaps do for you.
When you are not purchasing a property from MLS and also don’t use an agent, you can avail a fill the blank type purchase and sale agreement online from an attorney, in a paper supply store or from a local title for free. It is strongly suggested that any agreement which you use be inspected by your real estate lawyer.
Negotiating Deals With The Seller:
Negotiating the deals with sellers is the next important step; if possible, reach out on a mutually agreed contract in terms and price. You can carry out due diligence that includes any evaluations of property.
The details about the property must be then provided to either a title or a local attorney. At this time, you would also need to submit the required paperwork for financing, start arranging for contractors if work is necessary and check the validity of financials offered about the property and arrange for closing in managing whatever other problems that come up in due course.
Signing the papers at the attorney office is the last step of the buying process and the paperwork will be stored for record. Thus, you will become the new owner of a property.
Purchasing a home has always been deemed as a symbol of your success and prosperity. And above all, everyone dreams to own a house of his own. But all of us know that buying a house is not a piece of cake. From choosing the location, to taking loans, managing financial and legal issues to repaying the principal and interest, everything takes a lot of meticulous efforts.
But nothing is impossible and the pleasure this hustle guarantees can be expressed only if experienced. Hope this article will help you take your first step in this crucial journey of your life.