5 Smart Tips for the First Homebuyers

The challenge of buying a home for the first time can seem so scary that it's tempting to either just go with the first house that falls in your price range or continue to rent.
The first thing one need to determine is what his long-term goals are and then how home ownership fits in with those plans.

Tip No.1: Assessing the exact needs
For the first time homes buyers, it is extremely important to be sure of the reason behind purchasing the house. Knowing whether the house is for end-use or for investment point of view helps in making a good choice. There are several options available when purchasing a residential property: a traditional single-family home, a townhouse, a condo, a co-operative or a multi-family building with two to four units. Each option has its pros and cons, depending on your homeownership goals, one need to decide which type of property will help matching the exact needs.

Tip No.2: Specific Ideal home features
While it's good to retain some flexibility in the list, since it is perhaps the biggest purchase of one’s life, and one deserve to have that purchase fit both the needs and wants as closely as possible. The list should include basic desires, like neighborhood and size, all the way down to smaller details like bathroom layout and a kitchen that comes with trustworthy appliances.

Tip No. 3: How much mortgage do you qualify for?
 Before you start exploring, it's important to get an idea of how much a lender/ bank will actually be willing to give you to purchase your first home. You may think you can afford a Rs.50 Lakhs place, but lenders may think you're only good for Rs.30 Lakhs depending on factors like how much other debt you have, your monthly income and how long you've been at your current job.

Tip No. 4: How much you can actually afford?
Sometimes a bank will give you a loan for more house than you really want to pay for. Just like with the purchase of a new car, you'll want to look at the house's total cost, not just the monthly payment. Of course, looking at the monthly payment is also important, along with how much down payment you can afford, how high the property taxes are in your chosen neighborhood, how much homeowners insurance will cost, how much you anticipate spending to maintain or improve the house, and how much your closing costs will be.

Tip No. 5: Who will help you find a home and guide you through the purchase?
A real estate agent will help you locate homes that meet your needs and are in your price range, then meet with you to view those homes. Once you've chosen a home to buy, these professionals can assist you in negotiating the entire purchase process, including making an offer, getting a loan, and completing paperwork. A good real estate agent's expertise can protect you from any pitfalls you might encounter during the process.