Buying a new home is one of the biggest investments you’ll make in your life. If you’re like most people and don’t have a sizeable deposit to invest, you are most likely signing into a huge financial commitment that will last for the next twenty to thirty years. While it’s easy to get carried away with picking drapes, tiles and wall colors, there are a few checks and some preparation work that needs to be done. No one should enter into such a large commitment lightly, so be sure to do your research and go into the new adventure with your eyes wide open.
Get your paperwork together :
The process of buying a home consists of paperwork, paperwork, and more paperwork. You will be required to produce personal documents from your identity document to proof of payment and even reference letters. Then there is the process of making sure the property you’re investing in meets all your country’s property certificates. While making sure all the certificates are received can seem like a hassle, they are vital in ensuring your investment is of the right standard and actually worth the money you’re investing.
When you sell your home you will also be expected to produce these certificates before any sale goes through. While it may seem like iron-clad arrangements there are many people out there looking to make a quick buck and will not do due diligence when it comes to doing the correct checks making sure things are of a high enough standard. This is why it’s imperative that the compliance papers are house and verified by a trusted firm. Along with other documents like the value and last sale date of neighboring homes, the value of your potential home is estimated. This data is essential to making sure your resale value will be on par with your investment.
Know your numbers
Budgeting for your purchase is essential. This does not mean looking at your income and calculating the maximum amount you can pay into a home loan every month. You will have to consider many other costs, such as that of transferring your home from one deed of ownership to another and the accompanying lawyers’ fees. You will also need to register as the new homeowner, which means more registration costs. These could be thousands of dollars in fees that most prospective buyers don’t factor into their budget. Remember to also pay some attention to your credit score. This will be one of the main determining factors as to whether you will be granted a mortgage. If you are able, try to settle any outstanding debt before you draw up your budget and before you make an application. Having a favorable credit score will go a long way in helping you land your dream home.
Put your feelers out :
When you start the search process, cast your nets as wide as possible. There are various tools at your disposal, so use them well. Contact as many real estate agent as you can in the areas you’re looking to buy. Tell them what your rough budget and general requirement are and let them to the hard work for you.
Read Also :
- 5 tips to be Financially Prepared for Buying a Home in 2018
- Basic Tips for Making New Investments in Real Estate