How to be Financially Savvy When Buying A Home

December 21, 2017

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Buying a new home is an exciting but also a challenging time. It is such a huge investment for both you and your family that you want to make sure you get it right. There is so much to consider, from location, what schools are close by, transportation, your budget, and whether the home is worth investing in. It can seem like a bit of a minefield, so here is some advice to get you started. It’s good to have an idea of what to look out for, and how to invest your money in the right way. There is so much advice out there it can be difficult to know who to listen to, and where to put your money, so here are some great ideas to get you started.

Start Saving

This applies to all those couple or families that are renting and want to get onto the property ladder as soon as possible. Everyone needs to save for that first down payment, there’s no easy way around it. The sooner you start doing this, the sooner you can be on your way to having a brand new home. By saving for a down payment you can avoid lots of extra charges that come with buying a home. It might be difficult to save for many young couples, but anything you can manage will help. In the long run.

Shop Around

Key, Home, House, Estate, Business, Mortgage, Real The best way to get the most out of the home and the mortgage is to shop around. Realtors agents and sellers might try to pressure you, but there is no need to spend your money on the first thing that comes along. Shopping around will ensure you the best deal out there, and as you discover more and more options for yourself, you’ll learn what is a good and bad purchase. This knowledge builds up after some time when you have your eye on the market. Whatever sellers might say, trust your gut, and don’t rush things along.

Much can be said about buying at the right price. While some people actively wait and try and time the real estate market, it’s not essential and can be nearly impossible. Waiting for prices to change might work for some people, but if you find something you like at a fair price, it’s best to purchase it straight up.

Perform A Thorough Home Inspection

Real Estate agents want to sell their houses, and they need to because it’s their job and how they earn an income. They might overlook certain things, or leave things out when showing you around, so you have to check things out for yourself.

Look in every room in the house, open the cupboards, turn on the taps, see if the shower works. Inspect the heating system and boiler as well, as these are often hidden in storage areas and basements. Asking questions and looking at everything yourself will help you spot if there are any problems with the house. This will save you a lot of money in the long run, as there could be issues that you have to fix after you buy the place.

One additional thing you need to look at is the storage capacity of the house. If there are no extra rooms in the house, then consider renting a storage facility to keep your extra belongings and seasonal loads safe and secure. With this, you can rest assured that your valuables and belongings are safe and secure.

In the end, it’s highly advisable to hire a professional home inspector to do this for you. Getting someone to survey the house before you submit a purchase offer can prove to be a really smart move. Paying for an inspection typically costs around $400 – $500, but it’ll be worth the expense to know what issues the house has before you buy it.

Use Your Head

While it’s great to be passionate about a home because you are going to be living there, it’s also important to not overlook the bad parts. Making a smart purchase is always better than making an emotional one. If you buy a property because you love it, it is easy to overlook issues, or not see things that could be problematic down the line. Paying for a professional home inspection will allow you to see things through someone else’s eyes. And that can be hugely beneficial when you’re making the biggest purchase of your life.

Consider Renting First

Mad Money Cat - buying a home — Mad Money Cat bought a home at a great price. #financiallysavvy

If you are moving across the country, or even abroad, get to know the area before you spend your money on a home. Whether you are moving for work or retiring, get to know the place you are moving to. Renting for a while is a great way to do this.

It’s possible to short and long-term rentals on websites like this: rumahdijual.com/jakarta-selatan/apartemen-murah. Renting is a fantastic choice to get to know what you really want from a home in a particular corner of the globe. Moving to an entirely new place can be daunting, so don’t rush yourself.

Buying a new home is an amazing, but also very challenging venture. Everyone wants to make good decisions with their money, and here are some great ideas to get you started. It’s essential not to rush into things, and take things one step at a time. Shopping around for a house you like will give you a good idea of prices in your area, so you can make an informed decision when you find the right home.

Evaluate Your Assets

If you are interested in buying a home, you need to make sure that you have a clear understanding and view of your total financial picture, including assets and liabilities. For some people, this will be more difficult than it will be for others, particularly if you have multiple side hustles or you run a full-time business. You might even have money in different currencies including USD, cryptocurrencies like Bitcoin and Ether, or even money in a Euro account. Simply put, you’ll need to provide the clearest picture possible of your finances to a potential lender to snag property.