Are you in the market for your very first property purchase? If so, you’re likely feeling a mixture of excitement and anxiety. It’s definitely an exciting time, but it can also be nerve-wracking, especially if you’re unsure where to start. That’s why we’ve put together this list of 20 tips for newbie property buyers – so that you can approach your purchase with confidence and knowledge. Keep reading to get started!
- Before you begin your search, set a budget and stick to it. Ensure your monthly mortgage payment (including taxes and insurance) doesn’t exceed 28% of your gross monthly income.
- Determine what type of property you want – single-family home, condo, townhome, etc. This will help narrow down the list of potential properties quickly.
- Get pre-qualified for a loan from a bank or lender so that you know how much money you can borrow to make an offer on a property.
- Hire a professional real estate agent who knows the area well and can find properties within your price range that meet all of your criteria.
- Research the neighbourhoods you’re interested in to ensure they meet your needs. Look at crime rates, school ratings, and other local amenities that are important to you.
- When touring properties, be sure to bring a checklist of features you want to remain focused on finding the right property for you.
- Ask questions about things like HOA fees and taxes before making an offer – these can add up quickly!
- Have a home inspection done before closing so that you know exactly what condition the property is in (and if there are any potential problems).
- Make sure that all paperwork related to your purchase is filled out correctly and completely. This includes contracts, title documents, loan applications, and more.
- Don’t be afraid to negotiate with the seller on things like the purchase price or closing costs – you can often get a better deal if you’re willing to do so.
- Read all of the documents in your purchase agreement carefully before signing them – this includes any disclosures from the seller about potential problems with the property.
- Talk to your insurance agent before making an offer on a property to ensure that it is insurable and that you understand what type of coverage you will need for it (homeowner’s vs particular hazard).
- Ask about local transfer tax rates and other applicable fees when purchasing a home in your area.
- Consider getting a home warranty with your purchase – this can provide peace of mind as it covers many major home repairs after moving in.
- If you’re planning to renovate or repair the property, ensure that the costs fit within your budget.
- Get advice from a real estate lawyer about any special measures that need to be taken prior to closing on the property (such as obtaining title insurance). You can also consider auction bidding on the property as an option.
- Don’t forget about closing costs! These typically include things like loan origination fees, appraisal fees, and more – so make sure to factor them into your budget when making an offer on a home.
- Consider any additional costs you may incur after closing – such as repairs, landscaping, or other improvements.
- Start planning ahead for your move by gathering boxes and packing materials so that you can be ready when the time comes.
- Lastly, remember to enjoy the process! Buying a home is an exciting adventure, and with these tips in mind, you’ll be sure to find just the right one for you. Best of luck!
This article has been written for information purposes only. Please consult a qualified legal adviser for formal advice on buying property. The information here is provided as general guidance and should not be relied upon as an alternative to professional advice. Thank you for reading, and Happy house hunting!
About the Author:
Ray is a sought after thought leader and an expert in financial and money management. He has been published and featured in over 50 leading sites and aims to contribute articles to help novice financial planners. One of his goals is to impart his knowledge in finance to educate and help ordinary people create and achieve their financial goals.