We’ve recently discussed the basics and fundamentals of Real estate investment, how it’s different from other types of investments and why it’s a good idea to engage in real estate along with the things you’ll need to consider before you begin.
This time, we’re going to give you a tour of the things to expect, and how to prepare in acquiring your first house, as we believe that that the process of choosing and acquiring this property can become overwhelming and overbearing at times, especially if you have no idea how real estate agencies can help you with the process.
It can also become daunting and tiring to the point that, one might just simply go ahead and get what’s nearest or whatever comes first to them without even considering other options or looking for better alternatives – This is a commonly-encountered mistake and can cause unforeseen problems later on such as accessibility and travel problems.
A few things to ask yourself or family before buying your first house:
What kind of residence best suits me and my family’s needs? How much can I afford? Is there anyone who’ll help me search (and if not, we got you covered!) and lastly, which banking or financial firm will help me with the mortgage and insurance.
After considering those, it’s important to know that the procurement process involves deciding on what the buyer needs (as previously mentioned) a property search (getting a realtor or agent to help you is recommended), validating the offer and negotiation process, completing the contract and terms and finally, closing the deal.
Types of housing to consider
The most common types are the usual single-family house, a condominium unit, or a duplex (also known as co-operative building). Depending on what you choose, each has their own advantages and disadvantages and your current and planned lifestyle is a key factor in choosing which, aside from ownership goals.
Again, with the help of a real estate agent, they can give you better insights regarding the different types as well as looking for the ideal prospects.
Housing features
Because you’re making one of the largest purchases in your life, it’s important to consider a good balance between your needs and wants. You might want to live near your office or child’s school and other establishments such as hospitals and malls. For basic desires, a healthy neighborhood is one of the first things to consider with the house’s layout coming second.
Mortgages and actual funding
Depending on your credit score and monthly income, a debtor such as bank will assess how much you could get approved for your housing loan. You might also think that for example, you could afford a place worth $400,000 but the debtor would think otherwise and only grant you half the mortgage you expected – these becomes factors in procuring your house and might stall your move.
On the other hand, banks can loan you more than what you could actually pay for – a scheme that’s been commonly observed in the industry and something that you should avoid. Just because they are offering a generous sum does not mean you should accept it, as you could end up spending your entire monthly income paying for your mortgage with nothing left for your other necessities and needs such as food and utility bills.
Having a savings fund ready also helps stem the financial burden.
Getting the right real estate agency
A real estate agent not only eases the entire process of acquiring your house through various services such as mediating between you and the seller, they can also help with your paperwork such as insurance and contracts. A trustworthy real estate agency will also protect you from any further complications that might arise in any deal.
Continue saving
After finally getting your new house, it would be wise to keep saving for the following years and even starting an emergency fund for house repairs and maintenance. You might end up needing to get some utilities replace such as gutters, plumbing or other appliances in the future or as you live in your new home.
Do not include ‘selling your house’ to your retirement plans
Lastly but not the least, your retirement fund should not in the very least, include the possibility of selling your house or property as it’s counteractive – it defeats the very purpose of buying your own house to begin with. Where would you be at your retirement once you sell your house?
Your retirement funding should come from a decent savings that you worked on in your earlier years.
We’ve recently discussed the basics and fundamentals of Real estate investment, how it’s different from other types of investments and why it’s a good idea to engage in real estate along with the things you’ll need to consider before you begin.
This time, we’re going to give you a tour of the things to expect, and how to prepare in acquiring your first house, as we believe that that the process of choosing and acquiring this property can become overwhelming and overbearing at times, especially if you have no idea how real estate agencies can help you with the process.
It can also become daunting and tiring to the point that, one might just simply go ahead and get what’s nearest or whatever comes first to them without even considering other options or looking for better alternatives – This is a commonly-encountered mistake and can cause unforeseen problems later on such as accessibility and travel problems.
A few things to ask yourself or family before buying your first house:
What kind of residence best suits me and my family’s needs? How much can I afford? Is there anyone who’ll help me search (and if not, we got you covered!) and lastly, which banking or financial firm will help me with the mortgage and insurance.
After considering those, it’s important to know that the procurement process involves deciding on what the buyer needs (as previously mentioned) a property search (getting a realtor or agent to help you is recommended), validating the offer and negotiation process, completing the contract and terms and finally, closing the deal.
Types of housing to consider
The most common types are the usual single-family house, a condominium unit, or a duplex (also known as co-operative building). Depending on what you choose, each has their own advantages and disadvantages and your current and planned lifestyle is a key factor in choosing which, aside from ownership goals.
Again, with the help of a real estate agent, they can give you better insights regarding the different types as well as looking for the ideal prospects.
Housing features
Because you’re making one of the largest purchases in your life, it’s important to consider a good balance between your needs and wants. You might want to live near your office or child’s school and other establishments such as hospitals and malls. For basic desires, a healthy neighborhood is one of the first things to consider with the house’s layout coming second.
Mortgages and actual funding
Depending on your credit score and monthly income, a debtor such as bank will assess how much you could get approved for your housing loan. You might also think that for example, you could afford a place worth $400,000 but the debtor would think otherwise and only grant you half the mortgage you expected – these becomes factors in procuring your house and might stall your move.
On the other hand, banks can loan you more than what you could actually pay for – a scheme that’s been commonly observed in the industry and something that you should avoid. Just because they are offering a generous sum does not mean you should accept it, as you could end up spending your entire monthly income paying for your mortgage with nothing left for your other necessities and needs such as food and utility bills.
Having a savings fund ready also helps stem the financial burden.
Getting the right real estate agency
A real estate agent not only eases the entire process of acquiring your house through various services such as mediating between you and the seller, they can also help with your paperwork such as insurance and contracts. A trustworthy real estate agency will also protect you from any further complications that might arise in any deal.
Continue saving
After finally getting your new house, it would be wise to keep saving for the following years and even starting an emergency fund for house repairs and maintenance. You might end up needing to get some utilities replace such as gutters, plumbing or other appliances in the future or as you live in your new home.
Do not include ‘selling your house’ to your retirement plans
Lastly but not the least, your retirement fund should not in the very least, include the possibility of selling your house or property as it’s counteractive – it defeats the very purpose of buying your own house to begin with. Where would you be at your retirement once you sell your house?
Your retirement funding should come from a decent savings that you worked on in your earlier years.