Home Loan Guide For First-Time Home Buyers
Shopping for your dream home can oftentimes be a pressure-filled task. More so, if you have no idea how much home you can afford. If you are a first-time home buyer, there are a few things on a loan for home buyers that you should heed. These things will help ensure that you will not weigh down yourself with a mortgage or repayment and that you can get an acceptable return. Also, by knowing your price range in advance, you can avoid looking at homes you can never afford.
Make an outline or figure out your mortgage affordability and repayments that will build up against your home loan. Besides the price of the new home, there are other costs you are likely to incur when you buy a house. These may include document preparation fees, inspections, survey fees, lender’s fees, appraisal, closing costs, insurance and more.
Determine the amount you can:
- get from the sale of your current home
- lend or borrow
- arrange from your savings or investments
Estimate the approximate costs of buying and moving. Deduct this cost from the total amount you can arrange and it will give you an approximation of the price range you should be looking at.
Conduct a mortgage survey for your loan as well as the home you are planning to buy. While a physical inspection focuses on the condition of the building, a mortgage survey investigates the property itself. This can reveal a lot of information on possible problems with the home you are planning to purchase. This is expensive but very important and will benefit you in the long run.
You can now decide on a home that meets your needs and priorities. Look at open houses in your area to get a feel for the market. Since an average home buyer do not buy a house frequently, you must take every possible measure to get the best deal.
- You home’s location will determine the future value of your investment;
- Select the type of house that is right for you;
- Age aside, condition matters too. Likewise the size and layout of home you want to buy;
- It is also important to note whether the house is on leasehold or freehold and registered and unregistered property.
If you currently own a house, should you sell before you buy? The first consideration is cost. Can you afford to hold two properties should your current home sit on the market and not sell for a few months? Buying before selling may mean living with uncertainty. You can end up paying two mortgages, which can be difficult to afford.