It is a very special feeling when someone buys an item for the very first time. It doesn’t matter whether the thing is big or small; the emotion attached to the buying experience is overwhelming. If that special thing is a house then the pleasure gets doubled. But there are many steps that the buyers must know if they want the whole procedure to go uninterrupted.
Step-by-Step Guide to Buy First Home
If you are going to buy a house for the second or third time then you can bypass this guide. But the people who are new to this and want to buy a house for the first time then this whole discussion will be beneficial for you because all steps and options of Stop renting and start buying are going be under debate.
Find a Property Broker
If you want all of your tasks done without involving you then you should find a property broker first. He is an expert person who has a certificate which makes him/ her appropriate for this job. This person will conduct all the work from finding the property and helping you with the loan.
Consider your Loan Plan
Before actually applying for the loan; you have to think about the amount that you borrow and how many monthly payments you will make to repay the loan. Another aspect to consider is the interest rate on the loan. Three options can be fixed, variable or split rate of interest. Carefully look into these before applying for the home loan.
Arrange for the Down Payment
Whatever type of loan you apply for; there is one condition common in all is that they demand a good sum of down payment. This works as a guarantee for the financer that the buyer will definitely pay the rest of the money back in the form of installments. The ideal down payment is 20% of the actual price of the house.
Keep Check on Credit Score
For every home loan, the lenders demand that the buyer has a good credit score in order to approve the loan. The perfect score that has to be achieved is above 600. But there are others who can demand 500. But your score must reach at least 600 so that the lender happily gives you the loan.
Have Pre-Approval of home loan
It is very different from pre-qualifying for a home loan. It is a letter or a document that indicates that the person applying for the loan fulfills all requirements to pay off the loan. It is a detailed process because the lender has to look into all of the documents that you have provided them. You can consult a property company like Stop Renting Perth to help you in this situation.
Meet the Lenders in-person
Personally meeting the lender will have several benefits. One main advantage to mention is that you can discuss each and every clause of the deal face to face with him/ her. The down payment, interest rate, monthly payments, and other important factors can be debated. You can even have all these details written down on paper.
Consider Stop renting and start buying
If you are living in a house that is on rent then you can choose of buying it. There is a scheme in which you can buy the home you have rented. It has many advantages like you don’t have to visit properties which save time. You will already know plus points of the property and save from the tension of shifting.
Check property online
There are many websites and other online platforms on which you can get enormous varieties of properties. You can even compare several houses to look at the best option there is. The option of the personalized search will show the homes that are closest to the type you are looking for.
Inspection of the homes is necessary
Relying wholly on online websites is a foolish thing to do. There are several sites that have posted beautiful and attractive pictures on their websites but in reality, the houses are not up to the mark. So when you have chosen a few properties; although it will take the time you can be satisfied yourself with the various aspects of the houses.
Be ready for the second option
Always have a second line of defense when you are buying the house for the first time. It can happen that the lender you have applied to backs off for some reason. So what you will do? You don’t need to panic and be ready with a second lender who has already approved and will not back out from paying you.
Look at your budget
Take a good look at your finances one more time whether the amount you have fixed for buying a home is enough or not. Various factors influence the increase and decrease in the budget.
Give a good offer and close the deal
You have to tell of the amount that you will pay for the house you have selected. It is important to do so because the seller must know your range and then negotiate accordingly. After aging on the amount of Stop renting and start buying a home; you can now close the deal by signing the contract.