Buying a property could be a very stressful process, especially if you are doing it for the first time or are a novice at it. Buying a home isn’t cheap and so the stress is higher. Additionally, the minute you tell your friends and family that you are intending to buy a house, you are hoarded with suggestions and tips from them. This could overwhelm you furthermore. So, what can you really do to help yourself make this experience smoother? There are steps that you can take to simplify this process for yourself and make it less stressful. Here are some things that you can look at.
1. Identify your budget:
A property is a long term investment. However, before you actually invest in it, you must know how much you can actually stretch on the home loan based on your income and your existing liabilities. It is generally advised that you don’t look for homes more than three times the annual income of the household. Additionally, that you will have to weigh in the 10 – 20% down payment that is required for the loan.
2. Start your research:
Read as much as you can from property magazines, newspapers, and websites. Follow up to see how homes that you are interested in are changing in prices and the amount of time that they are staying for in the market. All of this will help you get a sense of what’s trending in the real estate market.
3. Identify the areas you want to invest in:
Locate the areas that you would want to invest in, and start scouting the area for existing properties and inspect them. This will give you a sense of the area, the neighborhood, and the purchase rates in that area.
4. Hire a real estate agent:
A good real estate agent can solve most of the hiccups that come with property buying. They can provide information on costs, the neighborhood and can negotiate on your behalf.
5. Get a pre-approved loan:
Talk to your banker, let him or her help you figure out how much of the loan you can actually afford. Getting a preapproved, prequalified loan from your bank will make the buying of your house a lot easier. This will also help you determine the budget you have for the home loan and take away the hardship of finding a loan after you have zeroed in on your perfect house.
6. A BIG house may not be the best idea:
Who doesn’t like a big house that shows their own level of prosperity and provides space for all the new investments one is going to make. However, when it comes to home buying, remember that you are making an investment. This means that the house must have resale value. Large houses appeal to a very small group of people, which automatically brings down your ability to sell it easily should you need to.
7. Identify the costs involved:
Often people look at the rent they are paying and think they would much rather buy an own house for the money they are spending. But be warned that they are not the same. Once you become the owner of a house there are a whole bunch of costs such as property tax, utilities, homeowner association dues, and so on that are associated with it.
8. Look under the hood:
Always inspect the house completely. Make sure you look through every nook and corner to ensure that you don’t have to deal with any issues after you have purchased the house. This will help you be prepared about the modifications that you might need for the house and the budgets involved in it.
9. Appraise the house:
Appraisers are third party analyzers that can judge if the price of the house is accurate and worth it. They will look at the house and let both the buyers and sellers of the house know if the price is fair. This will ensure that you don’t feel cheated for the price you are paying.
10. Familiarize yourself with paperwork:
Buying a house requires handling of a lot of paperwork. Familiarize yourself with it and make sure that you ensure that there are no disputes on the property, all the paperwork is in order and the exchange is legitimate. Real estate agents and lawyers can help you through the process.
Overall, this would be one of the most important decisions you will be making, however, it further has to be a pleasurable one. So, ensure that while you are doing everything to get your own shelter above your head, you are also thoroughly enjoying the process of buying your own home. Sometimes, it is not just the destination but the journey that should be enjoyable.