Buying a home is a goal that not everyone manages to accomplish. It’s a big step to take and it can get easy to be swept up in the excitement of looking for home and attending open houses. Before you go too far, it’s important to check out where you’re currently in.
Here are a couple of buyer-tested pointers before you continue searching for your new home.
Find out if it’s the right time. As stated above, home purchase is a big decision, so only start searching if you’re ready to shoulder the responsibilities of owning a property – not because you simply need an investment or think it’s the right “time” to settle down. Homes needs a great deal of time, money, and energy to buy and maintain. If the timing isn’t right, you may end up not loving your home and regretting your decision.
Assess your credit score and get a credit report. It’s crucial to acquire a free report annually. Check your report for any disputes or inaccuracies. Take note that it takes time to fix any issues, so it helps to start early.
For credit card or consumer debt, begin paying it off. If you’re debt free but have very little credit history, you may need begin establishing a good credit record. Don’t just apply for a new line of credit or a credit card since mortgage lenders are just interested in a borrower’s well-established track record, so they may view your new credit line negatively.
Save for down payment. Buying a home involves a down payment on the purchase price. Saving more towards a down payment means better mortgage terms. You also must save money for closing costs. Most first-time buyers don’t prepare themselves financially for the cash required at the closing table. Closing costs are different, but on average expect to pay around two and five percent of the purchase price of the house.
Know your responsibilities. Your living costs normally increase when shifting from renting to home ownership. No landlord will be available when something goes wrong. You now own a property and will need to fix, or pay to repair, things that goes wrong. Apart from utilities, you may also need to purchase or replace appliances.
Finding the right home in a great community is a vital factor when looking to invest and attain big returns in the future when you flip your property or use it as rental space. For instance, real estate investing in Springfield Rise near Ipswich will provide you the opportunity to own a home in a growth location. Springfield Rise is a Lendlease community in the western corridor, which is a short 30-minute drive from the Brisbane CBD. It is adjacent to the award-winning Springfield Lakes community. Everything is here from good schools, shops, parklands, train, hospitals as well as transport hubs.
As a first-time buyer, you need to know the basics of property buying, ownership, and maintenance so that your home-buying journey can go smoother without big hiccups that many first-time homebuyers unfortunately encounters. We hope you acquire a great investment property. Best of luck!