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 quality of the bathtub, tiles, and electrical fitting. Doing this will equip you with the right information and will help with budget planning. If you’re going to 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 lender to find those that offer 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, try to pick a credit institution that offers a longer grace period on your monthly payments. As much as possible, rely on the various lenders that are 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, your sibling(s), or your 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. It’s also prudent to decide on who to add as your next of kin. 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.
4. Inspect the requisite documents.
As a potential homeowner, you must make sure all the requisite documents are in place. It will help to seek the services and guidance of a lawyer skilled with home acquisition legalities. If you’d rather buy directly from the owner, it’s best to check the land registry to find out if indeed the land title and property deeds are in their name.
Alternatively, if you’re buying from a real estate agent or developer, check they have all the required certification in place to avoid being scammed. You can even go one step further to research the contractors’ legal status and qualifications working on such projects. These are all within your rights.
All in all, when buying a home, it’s vital to do your research first. Be sure your finances are in place, and if possible, check and scrutinize the legal documents of both the house and the seller for unfavorable clauses. Finally, decide the legal status of your property.
