My Blog

Home Business Property 101: Things first-time property owners should know

Property 101: Things first-time property owners should know

0
Property 101: Things first-time property owners should know

Buying your first ever property? Then you’ve come to the right place! Here, you’ll be able to learn the essential factors every first-time homeowner should know. There are things you have to know ahead of time before making your big purchase, most of which are things you should and shouldn’t do.

Purchasing your very own property for the first time can be a tedious process, especially if you don’t have a background in real estate. But there is nothing for you to worry about, tons of people have been in your position, even worst but come out of the process content. 

But to completely steer clean from any common mistakes, knowing everything there is to know about the dos and don’ts of property buying is your best bet.  So if you’re ready to get the upper hand in property buying, here is a list of things you should know!

What are the most common mistakes that homebuyers make?

There are tons of red flags to look out for when purchasing your first property. And as a newbie in the world of real estate, people will try to take advantage of your innocence. As someone without experience, you might also not know how to spot tip-offs in a home, as easy. So to prevent you from common mistakes, here are some things that might help:

  • Not knowing what you can afford – Purchasing your very first property can be exciting, too exciting that you sometimes forget what you can afford. There are various instances where people can no longer afford their home’s mortgage since they didn’t calculate it thoroughly beforehand. This is a common mistake that you can easily prevent by setting a budget and following it. Make sure your budget is realistic and something you can manage.
  • Not having options – Don’t settle for the first property you fall in love with, there are various homes on the market that might offer you a better deal, area, amenities and so on. So, have options. Having at least 5 will give you space to compare. These are one of the most common mistakes people get into they’ll regret later on.
  • Making a small downpayment – Another common mistake you’ll later regret is making a small downpayment. Although it might seem like a better idea at first, later on, you’ll realize, that a bigger downpayment will get you a smaller mortgage to pay. What you can do is make sure you can secure a down payment you’re comfortable paying every month.
  • Using up your savings – When deciding to buy a property, make sure this isn’t going to be a purchase that will leave you broke. Always have extra money for your monthly fees, renovations, repairs and living expenses. Setting this tip aside can potentially leave you broke and homeless later on.
  • Rushing the process – Last but not least is rushing the process. This is another grave mistake most people do since they don’t plan far ahead before making a big purchase. Buying a home is complex for a reason, there are certain things that are simply essential to go through. So map out a plan of your budget timeline a least a year before your purchase.

What are things first-time home buyers need?

Apart from having a stable income, there are other things first-time homeowners need. These are things that are essential to make the purchase, maintain their stay and protect their homes. So without further ado, here is a list of everything you will be needing:

  • A home loan – Even if you might have the money to pay for your home’s mortgage, it’s still something you should consider. Obtaining a home loan offers a number of advantages, including cheap interest rates, tax savings, the chance to increase your money, and much more.
  • A debt-to-income ratio – A DTI is the percentage of your income that goes to paying off your debts. How this works is, that you sum up all your monthly debts and then divide it by the amount you make each month or in other terms, your monthly gross income. If the number comes out low, you get better odds of being eligible to buy a home.
  • Have a good credit score – Having a good credit score will make you more creditable to mortgage lenders. This will imply that you can be trusted to pay back what you borrow. To have a good credit score, all you have to do is pay your bank debts on time.

How do I protect my property?

One of the most practical and efficient ways to protect your property is by insuring it. There are a handful of insurance policies you can get for your new home. But to get one that’s perfect for your home, consider hiring an insurance advisor. You can depend on the to make the process of getting coverage easier, plus they’ll help you understand the coverage you’re getting down to the last detail so you won’t miss out on anything.

LEAVE A REPLY

Please enter your comment!
Please enter your name here