For most people, buying their first home is more special than their first car. This is because mostly people buy their first home after settling financially in life. Buying a home is literally a life changing experience which everyone should go through at least once. However, it is necessary to plan it correctly in order to ensure a pleasant experience. Just looking for a good house is not sufficient. All the financial aspects from a mortgage to monthly maintenance need to be taken into account. You also need to select the proper neighborhood according to your requirements. Buying a house is usually on a mortgage and this involves a lot of financial planning. Here’s how to plan for your first home.
Buying Home at Right Time
First, you have to consider the cost you will incur in total when buying your first house. You need to calculate all these costs and decide upon the right time to by your first home. You also have to consider the rent you are paying. Rent is usually high nowadays but if you are someone who pays low rent, it is not feasible to buy a home just yet because you would be paying a higher mortgage. Another thing you need to consider is your position in your life. If you have tenure at your job then it is more than recommended that you go for it and buy a home. However, if your job isn’t quite confirmed yet, you should wait until you are sure.
If you are ready to buy your first home, it is time to calculate the costs you will incur. There will be a lot of costs you will have to pay upfront including the start-up costs, the closing costs and refurbishment costs apart from spending on new furniture. You will also be paying a monthly mortgage apart from a monthly maintenance costs which will incur to you. All of these should be taken into account before buying a house. Next, you have to ensure that your credit score is reasonably high to procure a good deal on the interest rates. Those 5% deals you may have heard of are only for people with scores higher than 700. So, it is advisable to look at your credit score first.
Once you’re absolutely sure that you can afford a reasonably priced house, it is time to look for the perfect house for you. If you’re working and yet to start a family, a small house would probably do okay for you. However, if you have been saving up and you have plans for a family, it is better to invest in a bigger home. After deciding on your home, decide on the type of home. Nowadays, people are choosing practical homes without a yard or a garden. This is because if you are working, you probably won’t have time for maintaining the garden. If you’re retiring and have a love of gardening however, you can look for a house with a garden and a backyard.
Once you’re done with all of the work required and the planning, you can finally go ahead and finalize your dream house. Having your own home helps in a lot of ways and is also a personal achievement. Most people buying homes today are young professionals. If you are a young professional, make sure to select a good home downtown with a lot of pedestrian traffic for safety. Downtown homes also have good neighbors whom you can depend upon. Hope this helps you decide on your first home. If you happen to have any queries, feel free to ask us by commenting down below.