Smart Tips for Buying Your First Property

It can be a nerve-wracking experience when it’s your first time to buy a home. Not only will this be one of your major purchases in life, this is one also fraught with complexities and uncertain expenses.  To make this journey a less stressful, here are some guidelines to help you get started.

Start Saving Early

Not saving earlier is a problem that most first-time buyers face. You are expected to pay 20% of the down payment once you inked the contract. However, some lenders now allow a 3% down payment for first time buyers. Keep in mind that when you’re putting less, you are expected to pay more and pay for mortgage insurance.

There are online property down payment calculators that you can use to see which payment scheme will work for your budget. One way to save money is to set aside tax refunds and bonuses. You can also opt to set up an automatic savings plan to keep your budget intact. You can use free apps to track your expenses and savings to help you find the right balance.  From here you can already see how much you can afford to set aside for your real estate purchase.

What’s Your Credit Score?

For mortgage loans, your credit score will be the first thing that will determine whether you get a lower interest rate or better finance terms. It is imperative that you check your credit score first before beginning your home purchasing process. Make sure to clear any errors and improve any way you can if you have a low credit score.

Look Into Mortgage Rates

It’s best to look into three different lenders to see which rates will fit your budget best. Most often than not, finding the right lender can help you save money on the first five years of the loan. Look into the fees and interest rates and choose one that will save you more money in the long run.

Consider the Kind of Property to Buy

Proper planning is essential to keep you from overspending. Though it is anticipated that there may be more to the cost than you originally budgeted, an appropriate margin should also be considered for other expenses such as insurance, government fees and homeowners fee to name a few.

If you’re unsure of the kind of land you’d like to purchase, talking to reliable agents such as R & R Real Estate will save you time and effort. Though you still have to do your own research, professional real estate agents already have the understanding about the market.  Professional real estate agents already have a pool of properties that may have the right match for you.

Don’t Go Beyond Preapproval Limit

As your agent shows you available properties or gives you a tour around the neighbourhood, always make it a point to never go beyond your pre-approved limit. While you can actually afford that amount, you have to anticipate surprise expenses such as broken household items and expenses that could come from homeownership like maintenance or improvements. Setting for a lower amount gives you the cushion you need for these unexpected costs.

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