Tips for Buying Your First Home

Many people will agree that buying a home is one of the most important decisions that they will ever have to make in their life. There are so many different factors to consider such as, which loan is best? Have I picked the right home for me? How long am I planning to live there? Ect.

No wonder many people find themselves overwhelmed with the decision making process. In addition to the questions that you will need to ask yourself above, you will also need to take other things into consideration such as what you want in a property, financing options, and moving into your new home.

If you are in the process of buying your first home, it s highly recommended that you hire the services of a Professional Real Estate agent to assist you in the process. There is too much at stake for you to try and handle it alone.

Buying your first home does not have to be all work and no play, but you can decide to make it an enjoyable and pleasant situation that will bring you fond memories for many years to come. You just have to understand that for everything to come together smoothly, you must take the time to plan ahead as much as possible.

The easiest way to go about the process is to find out up front how much home you are able to afford. The best way to accomplish this to visit a lender and get the pre-qualification process started. This can be done either in person or over the phone.

Keep in mind that there are many fees associated with your loan that you will have to be aware of such redraw fees, early repayment fees, and cost savings such as fee waivers, which are often not include in your comparison rate, but may influence the cost of the loan.

Other things to take into consideration are the amount of the loan and the repayment terms, which may vary according to the housing market. Take this example into consideration: a person buying a home worth $100,000, at 6% for 30 years will have a monthly payment of around $599.55. After they have paid on their mortgage for five years, they will still owe $93,054.36 to pay their loan off.

Most financial planners will advise you to make at least one extra payment per year over and above what you are required to pay. This will allow you to pay off your home in about 19 years instead of the whole 30-year term.

Last but not least, you need to know how much money your lender is going to want you to put down as a down payment towards the purchase of your new home. Down payment amounts can range from 0 down, all the way up to 20% down. There are programs available for people who may not have the total amount that they need to buy their home. Be sure to ask your lender about these different programs and what you need to do to find out if your qualify.