It’s incredibly exciting becoming a homeowner for the first time, especially when you’re moving out of rented accommodation where you may have felt like a lodger in someone else’s home for a long time. However, it is true that the process can also be incredibly overwhelming, especially once you consider all of the different costs that go towards buying and then moving into a house. If you’re wondering where you should start with the whole process, then here are six simple must-know tips that will help you get on the path towards purchasing your first home in no time.
Pay off as many debts as you can
Owning a home is much more expensive than renting thanks to upkeep costs and home maintenance, so you don’t want whatever extra income you have to be spent on paying off debts. Before you move, do your best to make sure you are debt-free.
Build an emergency fund
Cultivating an emergency fund that will cover you for around a few months to half a year is incredibly important, as you cannot afford to default on your loan payments if your income or personal circumstances were to change.
Work out your finances
It is important to know what kind of home you can afford before you start looking, as you don’t want to become attached to a house that is out of budget. Make sure to properly track your incomings and expenses and account for any differences that your new home might make to your current lifestyle.
Save for a deposit
The more money you have saved for a deposit, the more likely you are to get a better deal on your mortgage. While a good credit rating is really helpful for getting a higher loan rate and repayment period, getting a mortgage with bad credit isn’t impossible. Once you have been pre-approved for a loan, you’ll be safe to start searching for the perfect house.
Account for closing and moving costs
As well as your emergency fund, you’ll want to make sure you have enough cash stored away to pay for your closing costs on your new home. These fees cover some of the most important steps in purchasing a house, including getting an appraisal and home inspection, paying any estate agent fees on your existing home, and purchasing things like homeowner’s insurance and broadband when you first move in.
Find a house within your price range
Once you have all of your finances in order, the final thing to do is find a home within your price range in a family-friendly neighbourhood. Some important points to remember are looking at the local schools in the area, making sure the speed limits on your street are safe for young children, evaluating your commute to work, and finding out where the local shops and amenities are based. Try to get the whole family involved in picking a new home that you’ll all love, as then you’ll know that everyone is happy with the house from the get-go.
