Home Trending What You Need To Know Before Buying A House

What You Need To Know Before Buying A House

by Amarachukwu
home finance planning

Buying a house is a dream come true for many people even though the whole process can be hectic especially for the first time. There are various things to consider before purchasing a house, from financial considerations, lifestyle, size, and location. Successfully purchasing a house is all about having experience and going through all the details from start to finish. Except you have enough cash to spend, you can’t just pull out cash from anywhere and use it to get a house immediately. Instead, you need to go through a couple of processes that can be stressful, but quite satisfying at the end of the day. 

If you don’t have the experience or any idea about buying a house, here is a rundown of what you need to consider and understand before purchasing a house.

Decide If You’re Ready To Buy A House

Do you really need that house now? Are you ready for all the troubles that come with being a house owner? Owning a house is a full-time commitment, so before you begin looking for a house, you need to decide if you’re ready to become a house owner.

Check Your Finances

This is the most important thing to consider. Let’s say you see a particular house you love and you decide to purchase it but you realize you don’t have enough finances to buy it. This is why you need to list all your expenses first. For a proper listing, you should start by;

  • Look at your savings if you have one.
  • Consider how much you have in your savings.
  • If you end up using your savings in purchasing the house, make sure you have emergency funds to carry you through for the next few months before you bounce back on your savings.

Check Your Credit Score

Checking your credit score will help you determine your finances and see if you have a good credit record. Moneylenders use it to check your loan pricing and see if you’ll be able to repay if you take a loan to purchase your house. You can get your credit reports from Annual Credit Report.com or you can get them free from bankrate.

Clear Off Your Other Debts

It is important to clear off your debts before purchasing a house, especially if you are taking a loan so that you will have a good credit score. Moneylenders will not give you a loan if you have outstanding debts with other loan brokers.

Make A Down Payment

You need to have money saved before you can get a loan if that’s the option you are considering. Some money lenders require 20-50% of the price of the home as a down payment. Your down payment is a large one-time payment towards the purchase of your home.

Choose The Type of House You Want To Purchase

When you decide to buy a house, you will come across many options to choose from. For example, if you are a single-family you might consider buying a small apartment while for big families, you might be needing a bigger house. Whatever type of house you’re considering, it should depend on your location and budget.

Before choosing the house you want, you should think of the future too. If you are a single-family now, in the next five years will you still be single? If you get married or have another family move in, will the house be accommodating for you? When you think of all these, then you can finally

Choose the type of house you want.

What Features Do You Want Your House To Have?

Because buying a house is like making one of the biggest purchases of your life, your listings should include every detail, from the basic details like size and location downtown to the smallest details like bathroom, kitchen size. Your house is one of your biggest investments so you need to spend a large amount of time and money on getting the specific requirements you want for your house.

Hire A Real Estate Agent

Just like you have a lifeguard if you’re an inexperienced swimmer, you should have a real estate agent when you want to buy a house. Although some people believe getting realtors will be quite expensive in terms of commission and all you should bear in mind that it’s the seller who pays the commission to the realtor. Before hiring a house agent, you might want to find out a few things

  • Their track record
  • What they know about your desired neighbourhood
  • How much time do they have because you wouldn’t want a house agent that is over-scheduled with work.

Check Out Different Houses

Let your agent know the type of house you want or search for them yourself through visiting the houses in person is better than viewing them on photos.

Go Through the Neighborhood

You can’t buy a house that is situated in an inconvenient neighbourhood. You should consider the crime rates, roads, the lifestyle of your neighbour and the future of the neighbourhood because just because the neighbourhood is safe now doesn’t mean it’ll be safe a few years from now.

Longevity Of The House

It is necessary for you to have a preference for the type of house you want. For example, you could be interested in old houses or newly built houses. Older houses may cost more expenses since they may need more repairs and upgrades so before going for an old house, be sure to consider your budget in managing the expenses.

Do You Plan To Stay For Long

If you are buying a house to live in, will you stay there for as long as 5-10 years? although, this could depend on your kind of job or profession. If you are not staying in the house for up to five years, then don’t consider purchasing it.

Make An Offer

Once you’ve found a home you want, make an offer, including your initial deposit. A high deposit makes your offer more interesting especially if the demand for houses is high in that area. Don’t waste time in making an offer else you could lose the house to someone else.

Negotiate The Contract

If your offer is rejected, negotiate your terms. Just because the housing contract is documented and would require some signing here and there doesn’t mean it can’t be negotiable. Contracts are meant to be negotiated and you don’t have to sign a standard agreement. That is why they are called contracts. If you negotiate and your offer is still rejected, move on to another house.

Hire A Professional House Inspector

Hiring a professional inspector will cost you about hundreds of dollars but it’s worth it. Even though it may be difficult to spend more on house inspection, not inspecting it professionally might definitely cost you more. House Inspectors come into the property and inspect everything from the landscaping, wiring, plumbing and the roof so that they can be fixed before you sign the housing contract.

Ask About Warranties

Before buying a home, you might want to find out about the history of the home appliances like television, kitchen wares, refrigerator, and laundering machines. It is also important to ask about the age of the heater to avoid sending on any repairs when you move in.

Consider Furniture Expenses

Furnishing your house will cost you a lot so it is important to budget for furniture alongside your housing budget. Remember to focus on needs first before wants when budgeting for furniture. You could buy the necessary things for now, then buy the rest later.

Pay Attention To Hidden Fees

There are usually some hidden fees on property taxes and insurance when you want to purchase a house. You should talk to your realtor about any property tax or insurance that might be hidden because he might have the resources to help you find out about it.

Seek Professional Help From A Financial Advisor

Financial Advisors help with anything that has to do with your finances. A financial advisor can help you balance your needs and your wants letting you know that buying a house now can have an impact on your priorities later on.

Ask Yourself If You Are Prepared For Maintenance And Repair Cost

If it’s your first time buying a house, you should ask yourself of you’re in for all the problems that comes with buying a house like maintenance and repair costs. When I first bought a house, I had no idea half of my home appliances would need repair which had me wishing I had budgeted for all of them. As a homeowner you are now responsible for repairing any issue in your home, whether it is leaking pipes, broken taps or sink.

Do A Final Property Check

A final property check gives you the opportunity to go through the property before it becomes yours. This is where you get to ask questions, clear doubts, address any issues regarding the house, or even pull out if you are no longer interested in the house again.

Conclusion

It’s never too early to start thinking about buying a home. We recommend that you take the time now, before it becomes more difficult and expensive, to learn everything you can about your mortgage options and what steps are involved in the process of purchasing a new house. 

This will help ensure that when or if the right opportunity comes along for you, you’ll be ready with all the information necessary to make an informed decision on whether this is something worth pursuing. Let me know what you think in the comment section below!

 

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