Owning your first home is exciting, but it can also be overwhelming, if you’re unprepared. Muppa’s roadmap probably will guide you through the crucial steps to make the home-buying process smoother and more manageable.
Why saving early is key
If you’re considering buying your first home, it’s important to start saving as early as possible. Some upfront costs include a down payment, closing fees, and moving charges.You’ll usually need at least twenty percent as a down payment to kick start the process and if you opt for a home loan, it covers the rest of the cost. Prepare yourself to handle some additional expenses like loan processing, bank charges, registration charges, stamp duties, maintenance, corpus fund, etc.
Prepare your financial checklist
Before you start searching for a home, it’s better to have a clear understanding about your finances. This includes checking your credit score, reviewing your monthly expenses, and evaluating how much home loan you can afford. Credit score is a crucial factor in securing a favorable loan, easily, so it’s worth checking early on.
The power of pre-approval
Achieving the pre-approval for a loan before you start home searching is one of the best moves you can ever make. By submitting your financial information to a lender/bank, you’ll receive a pre-approval letter stating how much they’re willing to lend you. This process not just gives you a clear picture of your budget but also show sellers that you’re a reliable buyer.
Finding a suitable home
What does your dream home look like? Do you want a humongous backyard? Maybe you’re set on having the latest kitchen or a large master bedroom. Make a list of your priorities. This can include location, size, number of bedrooms, and even specific amenities. By refining your requirements, you will be able to eliminate options that do not align with your needs and concentrate on those that are suitable.
Exploring the market
Now the real fun starts. Start browsing listings, attend many property expos, and explore various neighborhoods. Whether you use real estate websites, local listings, or even a real estate agent, be patient. You might not find your perfect home straight away but don’t be disappointed. Be flexible and stay open-minded during the search.
Know what you’re buying
Before you make an offer, it’s important to do some research on the property. Check the builder/seller’s background, verify if all documents are in order, and understand any legalities or restrictions that might affect the property. Your real estate agent or legal advisor can help you through this process, ensuring that there are no surprises later on. Don’t miss this. Doing your due diligence will give you clarity and peace of mind.
Get your loan in order
Once you’ve made an offer and it’s accepted, the next immediate thing is to secure your financial part. Work closely with your lender to confirm your home loan. Your lender will perform a property appraisal to ensure the home’s value matches the loan amount. You may need to give additional documents or clarifications at this point. So it’s better to stay in touch with your bank or lender throughout this process.
Seal the deal
The last thing in the process is closing the deal. This involves signing the legal documents that transfer ownership of the home from the seller to you. Make sure you review all the documents carefully and don’t rush through this process. Get ready to pay any final costs such as closing fees, taxes, and service charges.
Congratulations! You’re now the proud owner of your first home. If you’ve secured a move-in-ready property, it’s time to plan the big move. Organize the moving process, set up utilities, and get your new home ready for you to live in. If your home is still under construction, stay in regular contact with the builder or your customer relations manager (CRM) to keep track of progress. Keep yourself informed and get ready for the eventual move-in date.