Buying a home is one of the most exciting moments of a person’s life. Why shouldn’t it be? You’ll have a place to call your own. Better yet, rental payments will be a thing of the past. But amidst all this euphoria, you must make the right moves to prevent unnecessary costs and disappointments. On that note, this article offers four critical things to consider before buying your first home.
1. Do your research.
Before purchasing a home, it’s imperative to do your groundwork first. It’s normal to get excited when you see a classified ad in the daily newspaper or online, but be wary. More often than not, this turns out to be a marketing gimmick. It’s, therefore, vital to do your research. Inspect the environment for damaging home entities like mildew, rodents, and insects. Check all the little things like the bathtub’s quality, tiles, and electrical fitting. Doing this will equip you with the right information and help with budget planning. If you have to plan a one-day bathroom remodel or install a new tub once you buy our new home, you’ll know what to expect beforehand.
2. Sort out your finances.
After deciding on the home to buy, try to evaluate your finances. Normally, many first-time homeowners can’t self-finance. As a result, they have to rely on external credit facilities like a home loan or mortgage loan from a bank or credit institution. If you decide on a home loan, carefully assess your options. First, ensure your contract is beneficial to your current financial situation. This is possible if you first research the various lenders to find the best deals. Preferably, opt for a lender that doesn’t require a high credit score, demands little or no down payment, and offers a low-interest rate. Also, pick a credit institution that offers a longer grace period on your monthly expenses. As much as possible, rely on the lenders less likely to attempt foreclosure.
3. Decide the legal status of your property.
If you’re single and without kids, deciding the legal status of your property is usually straightforward. You can register the property in your name, sibling(s), or parents. If you have a spouse, this decision requires some more thought. In certain jurisdictions, a married partner’s properties belong to both partners unless explicitly stated in a legal document. Deciding who to add as your next of kin is also prudent. If you struggle to make this decision, the services of an expert marriage counselor will likely come in handy. Your local marriage registry or religious institution usually offers free consultations for such services.
