5 Very Helpful Tips When Buying a New House

Every person dreams of having their own place. It’s a goal many young people strive for when they’re starting a family. It’s a solution for those sharing a home with other family members. And to many, it would give security and peace of mind.

According to research from 2008-2015 about the homeownership rate, the country with the biggest one is Romania with 96.4%. Singapore and Slovakia are following behind with 90.8% and 90.3% respectively. China takes 4th place with 90%, Russia 10th with 84%, Australia 38th with 67%, France 39th with 65%, the US 41st with 64.5, the UK 42nd with 63.5 and Switzerland in the last, 49th spot with 43.4%.

What is interesting is that one of these countries is a homeownership market owned by Millennials with a 70% rate. Based on the HSBC study, 70% of homeowners in China are Millennials. Next came Mexico with 46% and France with 41%. The US, Canada, and the UK have around a third of this generation owning a home, while the survey data showed that 83% of surveyed Millennials planned to buy a house in the next five years.

But whether you’re a Millennial or not, before you join the ranks of those who own a house, there are a few things you should consider beforehand. That’s why we prepared these helpful tips to guide you through the buying process.

1. Scout the neighborhood

You probably already have a certain neighborhood in mind. But also, have other backups on the list. If you have children, it’s important to know the state of educational institutions and the crime and traffic rates. Another important thing to consider is the commuting to work and the distance from the city center. Usually, the neighborhoods closer to the center have higher house prices.

However, check other neighborhoods which are similar to the one you want, but less popular. Newly built parts of town are becoming up and coming places to live, so see if there is anything interesting there. It’s always good to look at several different neighborhoods and review the offers. Some might even surprise you.

1. Choose the right real estate agent

Your real estate agent will be your best friend during this process. They will look for what you specifically want and within your budget. On the housing market, they represent you and that’s why you trust them. Look at several agencies before you choose the right one. It’s good to ask for recommendations from friends or read reviews online.

A great real estate agent will do everything in their power to find you the house you want, and will even think outside the box and offer some useful suggestions. You can go through the offers with them, ask any question no matter how silly it may be and also delegate special requests to the home sellers.

1. Check several offers

You can also do some research on your own. Look at the advertisements and compare the prices of houses in the desired neighborhood. Sometimes it may happen that someone is selling their home at the market price and you can be the first to notice it. Additionally, it will give you a clear picture of what the state of the market is and how to calculate your budget.

Viewing several offers will also tell you something more about the neighborhood. If many people are selling, then you should ask what is wrong with that part of town. Your priority is to find the perfect house within your budget, so be prepared for the fact that it will take you some time.

1. Look into a mortgage, loan and financing programs

When you become aware of the price, contact your bank and schedule a meeting. Go over the mortgage and loan plans with your banker or broker. It would be better if you had some money of your own, in order to lower the installments.

You can get pre-approved for a loan. This will help you see how big a loan you can get, and will help you to maybe shorten the list of potential homes. It will also show the sellers that you have a serious interest in their property.

First-time Home Buyer Programs are another source of funding that has been all over the media. Many countries decide to help their citizens to buy their first home with lower taxes and incentives. If your country offers something like this, check out the requirements to make the cut. Also, as a first-time home buyer, some banks and loan organizations may offer incentives and low down payments, too. So it would be wise to ask around and find the best suitable choice.

A mortgage is something people usually take into consideration. It is a form of a loan which uses your property, such as your new home, as collateral. If you are unable to follow through the mortgage agreement to the end, the bank can take your property away to cover the costs.

Choose wisely which suits you best, since this type of debt can create quite a cost in some countries and burden your everyday budget. Bear in mind that you also have to do some modifications and renovations, as well as to pay bills, taxes, food and other living expenses.

1. Take a good look at the property

Never come to a decision without inspecting the property. If you can, bring someone experienced with you, like a handyman or civil engineer to advise you and examine the place. Sellers will do some smaller repairs, but the big ones may be too expensive or they just didn’t find them necessary.

Stalling on AC repair can create water on the walls and affect the installations so you will not only have to replace the whole system but also fix that part of the wall. Bad insulation will increase your energy bill, while bad roofing can cause some serious damage to the house structure. Sewer and water supply systems need to be examined for possible faults, while you should ask an electrician to take a look at the electrical grid.

All this will save you money and time on repairs later, and you should seriously consider performing an in-depth inspection before placing the house on your potential list.

Final thoughts

Take your time and stay calm. These are the two most important things you can do when buying a house. It’s a big investment and hopefully a long-lasting one, so you want to examine all the opportunities and chances.