Buying a home is huge! It is not an investment to be taken lightly. To help with the process, here are a few tips to consider before taking the plunge:
- Think with your head not your heart. Yes, buying your first home is a big deal and an emotional one at that. But in order not to get ripped off by spending more money then you bargained for, or to not end up with a home you are actually not happy with, it is best not to let the excitement carry you away.
- Do not let real estate agents or home owners pressure you into purchasing a home without a home inspection. A home inspection completed by a professional is an absolute must to ensure you know exactly what you are getting yourself into.
- Get officially pre-approved for a mortgage before you start looking. Some websites have mortgage calculators where you can input your income and it will tell you what you can afford, but these are often not completely correct. You don’t want to start looking and fall in love with something you cannot afford; this will only lead to heart break and disappointment.
- Once you are pre-approved, don’t purchase a home for the full amount you are approved for. Mortgage pre-approvals don’t take everything into account, like how much you spend on petrol or the cost of crèche. Make sure you crunch the numbers at home to how exactly how much you can realistically afford without feeling ‘house poor’.
- Don’t forget the invisible costs, like closing costs, hiring a moving truck, purchasing boxes and other materials needed to move, lawyers’ fees, and any home repairs you may need to make once you move in.
- Sudden decreases in interest rates may seem tempting, but don’t let them tempt you into purchasing a home on a whim in order to take advantage of them. This may result in you living in a home you actually did not want.