Buying your first house is an exhilarating as well as a nerve-wracking adventure. For first-time home buyers, buying their house is not merely a financial investment but a giant leap toward writing an important chapter of their lives.
However, they can get easily overwhelmed by the little, tiny details that the home-buying process entails, from finding a skilled and experienced real estate agent to dealing with all the nitty-gritty of the documentation involved.
To make the process a little less horrid and more pleasant, we have presented a step-by-step guide and top tips for first-time home buyers.
Key Takeaways –
- Evaluate your financial readiness before you commence your house-hunting journey.
- Determine your budget and calculate how much you can spend to buy your first house.
- Explore the real estate market and fix your location.
- Get bank approvals as fast as possible to make your first home-buying process smooth and easy.
- Hire an experienced and well-qualified real estate agent for assistance and guidance.
Make sure You are Financially Ready
The house-buying journey must begin with an open discussion between you and your partner to determine if you are ready to make a long-term and expensive commitment. Then, you must take a close look at your monthly income stability and financial situation. It will help you figure out what you’ve saved for your down payment and how much money you require to afford your dream home.
A point to note here – usually, most home loans can cover 75-90% of the value of the property. You need to prepare the remaining amount as your down payment, along with some emergency funds.
Determine Your Budget
After you have thoroughly assessed your financial condition, you must set your budget to buy the house. It is one of the most important pieces of advice for first-time home buyers. Don’t give a single thought to buying a house you cannot afford. You must also include additional expenses, such as registration fees, stamp duty, and maintenance costs while determining your budget.
Additionally, you should check your loan eligibility by consulting banks or other financial institutions. Make sure that you have a good credit score since it can influence your loan approval and interest rates.
Identify Your Requirements
One of the first-time homebuyer tips we share with our clients is to make an upfront wishlist to identify their requirements for the property.
It should include the property type, its size, and amenities. Before you jump into house hunting, you should decide whether you want an apartment, a villa, or an independent house; what should be the size of your house – the number of rooms it should include, and the type of amenities, such as a clubhouse, swimming pool, gym, security, or parking that should come with the property. All these decisions are usually based on your lifestyle preferences and future plans.
Location, Location, Location
The next step in your house-buying journey entails researching the real estate market and exploring locations. While choosing your dream home, you must check its proximity to important landmarks, essential infrastructures, and recreational services, such as schools, healthcare facilities, shopping areas, playgrounds, railway stations, and airports.
Seek the Assistance of an Experienced Realtor
Choosing a skilled and experienced real estate agent can make your house hunting smooth and hassle-free. He is a valuable and reliable ally in your first home-buying journey. Your realtor can offer you valuable real estate market insights and expertise. He can scour the market for residential spaces that meet your specifications within your budget. Also, a real estate agent can help you check the developer’s credibility, track record, and previous projects. Additionally, he can guide you through the negotiations and decipher complex paperwork and documentation.
Let the House Hunting Begin!
Now, the fun part starts when you go house shopping with your real estate agent. Your realtor will show you several residential spaces based on your location and specifications. Here’s some top-notch first-time home buyer advice – it may be amusing to scroll through property listings online on websites, but it is always better to walk through the property space in person, examine all nooks and crannies and have a feel of the outdoor space and neighbourhood.
Evaluate the Resale Value of the Property
Even if you intend to live in the residential property you are buying, evaluating its price appreciation over time is wise. While choosing your house location, assess future growth and infrastructure development in the area. Infrastructure and commercial development contribute to increasing property resale value over time. Also, it’s prudent to buy your house in an upscale area with excellent connectivity and top-notch amenities.
Check Bank Approvals
One significant aspect that first-time homebuyers should consider is to check if the residential project they are considering is approved by a reputed bank or not. When a reputed bank approves a residential project, it means that the bank has verified everything and the project has the assurance of being legally and financially compliant.
Verify all Paperwork
Buying a property involves a lot of paperwork and documentation. Ensure that you thoroughly verify every document that you receive. Check if the residential property you are buying is registered under the Real Estate Regulatory Authority (RERA) and confirm its RERA number online on the official website. If you have any questions or doubts during the documentation process, do not hesitate to demand answers. It is highly crucial for you to go over and comprehend every piece of information present in the paperwork.
Grab the Keys and Move in!
Congratulations! You are now a proud owner of your dream home. It’s time to receive your keys, get possession, and move into your house. It is important to note that you should set up the utilities in your name and do all your desired renovations (big and small) before you move into your house.
The Bottom Line
Buying a house can be an emotional roller-coaster ride. Having a little sense before you move forward on the daunting home-buying path for the first time can really aid you in staying calm and less stressed. Therefore, these tips for first-time home buyers can help them stay on track.
Make sure you take ample time to make decisions, conduct thorough research and investigation, and take guidance from market experts and realtors to assist you through every stage of your first home-buying journey.
Watch Now:
