8 Tips for First-Time Home Buyers

It's an exciting moment to be a first-time home buyer! But I understand how daunting it may be, especially when you see homes selling for roughly P2 million on average and available properties selling in less than two weeks.

With such real estate trends, you may be tempted to make an impulsive purchase that would jeopardize your financial goals and keep you paying a mortgage long after you retire.

That is not what anyone wishes for! That is why it is critical to understand how to buy your first house properly. "Yeah, that'd be amazing, but how?" you may be wondering.

So, there you have it: first-time home buyer tips to help you navigate the process, save money, and close the deal.

TIP #1: IDENTIFY YOUR NEEDS

You may have always fantasized about a massive home with 6 bedrooms, marble staircase, grand kitchen, and a spacious garden, but have you thought about what you genuinely want and need in a home?

Have you thought about how many bedrooms you will need, if you will need a pool, a large yard for your children to play in, or whether you will need a home office or a theater room? And have you considered the neighborhood and environment in which you want to reside, as well as which makes the most sense for your family's requirements and lifestyle? Is it a condo, an apartment, or a single-family home?

Where you are now and where you aspire to go in the future may not be the same as where you imagined you would be when you initially dreamed of purchasing a property. As a result, take the time to evaluate your present and future needs. Then write a list of what you need and desire in your future dream home. Having a firm grasp of your housing requirements allows you to determine the most critical factors to consider while visiting properties.

TIP #2: DECIDE HOW MUCH IS YOUR BUDGET

Investing in real estate will most likely be one of the most expensive decisions you will ever make. It's an investment in your lifestyle and future, so don't take it lightly, and don't purchase over your budget. It will only lead to disappointment, if not disaster.

Before you begin your search, do the calculations to see how much you can afford to spend.

TIP #3: RESEARCH MORTGAGE LOAN OPTIONS

While many people believe that a standard loan is the only choice for investing in real estate, you have various mortgage loan options accessible to you. Banking loans, Pag-Ibig housing loans, and in-house loans are examples of these. Usually, lenders will give you the option of choosing between a fixed rate loan or an adjustable rate loan (ARM), as well as your chosen repayment period.

Each mortgage loan choice has advantages and disadvantages. Consider working with a home financing specialist to obtain the home loan that best fits your specific needs.

TIP #4: CONSIDER THE LONG-TERM AND BE PATIENT

When it comes to buying, a wise strategy is to go for the least expensive property in the greatest neighborhood, because you'll have a better chance to upgrade the property's value if you purchase at the lower end of the price range in a good location.

Stay updated on the neighborhood's real estate values and economic activities. Are housing prices increasing or decreasing? Are businesses growing or shrinking? What's going on in the area may tell you a lot about how valuable a neighborhood is. It may take a bit longer to find a home that will be a solid long-term investment, but it is definitely worth it, especially for your first home.

TIP #5: SECURE A PRE-APPROVAL LETTER

A pre-approval letter shows house sellers and their real estate agents that you're a serious buyer, which can help you beat out competitors who are interested in the same home but haven't yet gotten approval.

When you're ready to start house hunting, apply for your pre-approval. As long as you submit your applications within a certain time frame, applying to several lenders shouldn't affect your credit score and will assist you in obtaining your letter.

TIP #6: PARTICIPATE IN THE HOUSE INSPECTION

A house inspection is an in-depth examination of the structure and mechanical systems. Professional inspectors check for any issues so you can make an educated decision about purchasing the property.

In most cases, the buyer is present for the inspection. You may gain a better knowledge of the home and ask questions on the spot by accompanying the inspector around. If you cannot attend the inspection, read the inspector's report carefully and ask them to explain any areas that are unclear for you.

TIP #7: TALK TO THE SELLER AND MAKE AN AGREEMENT

You may be able to reduce costs by suggesting that the seller pay for the repairs in advance or by negotiating to decrease the price to cover the cost of future necessary repairs. You could also request that the seller pay a portion of the closing fees. Take into account, though, that lenders may set limitations on the seller's capacity to pay for a fraction of the closing costs.

TIP #8: PREPARE FOR THE CLOSING

The closing process will begin once the seller accepts your offer. It is critical that your financial situation does not alter during this period in order for the closing procedure to go as smoothly as possible. Make sure you read any paperwork you get carefully and ask your real estate agent or attorney to clarify anything you don't understand as you go through the process.

Are You Ready To Get Started?

Your first home is a big real estate investment, maybe the most significant you have ever made or will ever make! You do not want to make a mistake as a result of this. A real estate consultant will ease your pressure by guiding you through the process of selecting a home, negotiating a transaction, and seeing the process through to completion.

So, go ahead and start looking for your dream home right now. You may check out our Camella properties and determine whether they suit your preferences and budget.