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5 things you need to know before buying your first home

Buying a home is a real challenge for most people.

By Cosmin ChildPublished 4 months ago 3 min read
5 things you need to know before buying your first home
Photo by Rowan Heuvel on Unsplash

Beginners, however, tend to be overwhelmed and make certain mistakes due to a lack of experience.

Since almost all of these purchases are made through loans, this is one of the things you need to pay close attention to.

Even if you are in this situation, you can do certain things to increase your chances of doing good business.

Take advantage of government programs

In addition to the government’s “New Home” program, which facilitates the provision of state-guaranteed advantageous loans, there are other types of programs and subprograms that you can use, such as the Green House Plus Program, which facilitates works aimed at increasing energy efficiency.

Therefore, it is good to document yourself and turn to professional consulting services if you want to increase your chances of choosing the most convenient real estate option.

Consult an independent specialist

If you talk directly with the banks, they will be more cautious or more casual, depending on the current strategy that is convenient for the business, but not for the customer. Therefore, if you want to know how much you need to stretch, it would be good to talk to an independent mortgage broker.

He will be able to tell you what are the pluses and minuses of each form of income (employment contract, self-employment, variable income, allowances, etc.), which are the most favorable creditors, which clauses you should avoid and it will be able to give you a relevant estimate of your future finances, based on inflation and your spending ambitions.

Be careful if you are not alone in this investment

Of course, those close to you can be very helpful when you want to buy your first home, both in terms of logistics and in terms of a possible gift to help you get the credit or to arrange your house.

However, if you are planning to invest with a partner or sibling, it is best to go to a lawyer to enter into a contract, which sets out the percentage assigned to each participant at the time of sale and other details. of this kind.

Don’t let these things get the better of you.

Think long term

Fixed rates are in vogue these days because they are built to offset any fluctuations in the market. In addition, fixed rates are somewhat more practical when it comes to making long-term budgets and projections.

However, there is a downside to fixed rates: you will have to pay early repayment penalties if you decide to sell your home early or simply pay off your loan in advance.

At such times, it is essential to control your emotions, not rush, and to think carefully about what you will want to do later in life before making a decision, just as you should. on an all-in move to a poker tournament or if you were about to choose a career after high school. Ideally, try to answer some basic questions honestly.

Will you want to move in the future?

How attractive will the property be in 10 years? Could the improvements and upgrades you are about to make add value to potential buyers?

Understand that real estate agents work for homeowners

As kind as a real estate agent may seem, he works for the developer or the owner and not for the end customer. For this reason, you need to make sure that you never let your guard down and that you do not say things that could make you look vulnerable.

On the contrary, what you say and do must show confidence in your strength, seriousness, financial stability, and a degree of determination and availability, but not haste or despair.

Also, do not hesitate to ask immediately about the commissions and make a comparison between the offers of several agencies in the area.

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