In many cases, buying your first home is the most important buying decision of your young family’s life. As such, it can be both an exhilarating and stressful experience. Chances are you’ll be tied up to this property for a large portion of your life, and it could turn into an asset just as easy as it could become a burden. However, too many people go in either unprepared or with false ideas, which could lead to them regretting their purchase. Here are some of the things you should know before buying your first family home.
Be Open Minded
We sometimes have tunnel vision when it comes to where we’d like and wouldn’t like to live. However, areas can change drastically, even in the span of a few years, and you could have a completely wrong idea of a certain area of your city or country. While prices for homes in most urban centres are pretty high nowadays, some localities may still have some hidden gems. It’s up to you to see if you can manage things like the commute and see if the trade-off is worth it.
In other cases, you could get much more house than you would in the city if you look at properties on the outskirts or outside the city’s centre. You should also scope the area a few times before you make a decision. Check out if the neighbourhood or town is booming or in a depression. Look for signs of economic activity. Look at the establishments in the area. Are you seeing a lot of foreclosures and boarded up houses and businesses? Is the town’s centre bustling with activity, or is it mainly depressed and deserted? This could give you indications of whether you’re moving to a city that is on the come up, or slowly decaying.
Plan for Extra Coverage
A lot of things won’t be covered by your homeowners’ insurance, so you might want to consider how much it will cost for extra coverage. Home emergency coverage will cover you for things like a defective boiler, electrical breakdowns, or plumbing issues. You can even find home emergency cover plans from companies like Certi that will cover you against pest infestations or security issues like broken windows for instance. We strongly suggest you start looking at different types of coverage right now and factor them into your total costs to avoid surprises.
Mortgage Brokers Can be Helpful
Mortgage deals can be a headache, and there can be tons of hidden fees involved. And depending on how much you put down, you have to factor in the terms and interest you’ll have to pay, which is not always easy to wrap your head around.
A good mortgage broker will be able to tell you in clear terms how much exactly you’ll be paying per month. They will also be able to give you some advice as to what type of mortgage would be better for you depending on the current interest rate trends. They’re the ones with their feet on the ground, and they usually will be able to better predict interest rate movements. However, know that even the best brokers are wrong sometimes, so don’t take their word as gospel.
Valuations and Property Reports Aren’t Surveys
Another thing you have to take into consideration is that surveys and property reports are not one and the same. While a survey will have important information on the house, it won’t be as in-depth as a survey. Surveys are a bit more costly too.
With surveys, a surveyor will check the property in detail and look for evidence of serious damage or things that could become an issue later on. This is especially important if you don’t want to buy a house with hidden issues or something major like foundation problems. It would also be wise to have different surveyors come in at different times since one could miss something. This is the only way that you can have a better idea of what would need to be repaired right away, or what you may need to repair soon.
The Process Can Take Longer than Expected
Even after an offer is accepted, you could wait a long time before the deal is finalised. It’s not uncommon for people to wait over 8 months for a purchase to be completed. So, don’t get overly excited if you get a deal. Also, you should be ready to apply pressure on the other party in case things seem to be stalling, even if it means threatening to get out of the deal.
Buying your first home is a once in a lifetime experience, and one you have to get right. Make sure that you take all of these tips into consideration and make sure that you are thoroughly informed about the whole process before you make a decision.