5 Useful Tips to Help You Buy Your First Property

Buying a home for most people is one of their main aspirations. Homeownership gives you more power over your abode. You can decorate it, extend it and add permanent fixtures, such as a heated pool or games room, that you can enjoy for years to come. 

However, beyond all the advantages homeownership brings, buying a house can be very stressful. 

After all, a home is probably one of the most significant purchases you’ll make in your entire life. So, the pressure is on to make sure your decision about what house to buy, contracts, insurances, and so on are in order.

If you’re feeling lost in the process, this post has five need-to-know tips that will ensure you’ve got some of the important stuff covered when looking for and purchasing your first home.

Think About How Much House You Can Afford

You may have found a house in a suburban sweet spot that’s ticking all the right boxes. But if the house is way over your budget, you may need to revaluate which areas are in your price range. 

Affordability is an unavoidable hump that ideally needs to be addressed before you begin looking for a home. As such, it helps to tally up a budget for a down payment, moving costs, insurance, and the ongoing mortgage payment.

While arranging your finances and discover what homes you can afford, here are three things to consider;

• Take a look at the average deposit amount mortgage lenders require. You could need anywhere between 5-20% of a property’s value.
• Your wage will determine how much money lenders will give you. As guidance, you may be able to apply for 4x your annual salary. Giving you an idea of the maximum banks will lend you to buy a house.
• Try not to allocate more than 35% of your gross salary on your monthly mortgage payment. In turn, you will have enough left over to budget for bills, food, and of course, fun!

Financial protection is crucial during big investments such as this one and you should see look into how your state’s laws work, specifically if you’re looking for a home in Pennsylvania. Make sure to get quotes for the best title insurance PA has to offer so you can have peace of mind in your home purchase. This will not only protect your investment, but also provide legal and financial support in case of any issues with the title of the property.

Is the Home You Want Practical?

There are some things we need from a house and other things we want.

For instance, a couple with two young children are likely to need at least a two or three-bedroom house near a good school, within a reasonable distance from work. Anything beyond this is a bonus.

Thinking about needs instead of wants forces you to be realistic about what is necessary when house shopping and can prevent you from overspending on your first home.

Remember to Get Binders Insurance 

When you buy a home, home insurance is necessary to prove to the lender and other relevant parties that your home is covered. However, when you’ve just purchased your home insurance, you may not have the policy to hand straight away. 

As a temporary measure, request an insurance binder from your provider. For those wondering what a binder is, it’s a document from your provider, which serves as proof that you have insurance for your home.

Binders insurance is essential to avoid the prospect of lenders and so forth delaying your application process for your first home.

Inspect the House for Problems

Once you’ve found a property that’s practical and within your means, check it out for any problems. 

From the attic to the cellar, be wary of damp, asbestos, or cracks in the home’s structure. Cases such as this could mean you encounter health issues and will also cost you money to fix the problem.

Additionally, any issues you find could give you the power to negotiate the house price down.

Look Beyond the Interior

It’s easy to get caught up in the property’s appearance. The floral wallpaper, dishevelled flooring, and mismatched furniture can alter your perspective of a home.

But to avoid limiting your home buying options. It’s essential to look beyond the superficial mask of bad interior in a home and imagine what it could look like if you were to put your own stamp on it. 

This method can prevent you from ruling out houses that, beyond their appearance, actually tick all of your boxes. You should visit this site as it allows to do just that, by providing  detailed info like a 3d tour and even start positions above the house.

And so, if, for example, you see a home that’s under budget, it has the square footage and facilities you need, but it doesn’t look great inside. Just think, changing the carpets and painting the walls is a small price to pay to get the home that meets all of your requirements and more.  

From defining how much house you can afford to getting that all-important binders insurance document to prove you have home insurance. The above five tips outline a few necessary steps to help you on your home buying journey.