If you’re a first-time homebuyer, there’s often a steep learning curve. Deep in your heart, you know that buying a home is right for you, but actually getting there is a massive challenge. There’s just so much work that you need to do and many decisions that you have to make.
Fortunately, this post is here to help. In it, we take a look at some of the things that first-time homebuyers must understand. By reading this post, you’ll save a lot of time, money, energy, and hassle.
“Sweat Equity” Can Save You A Fortune
While getting other people to do all the work on your home is convenient, it’s also expensive. Paying painters, decorators, and handymen to make it spick and span can set you back thousands.
Here’s where “sweat equity” comes into the picture. Working on your home yourself is significantly cheaper than getting someone else to do it for you. Yes, it involves a lot of work, but it makes it much easier to get the property you want. You can save a small fortune.
Put Down A Large Down Payment
Many first-time buyers look for mortgages with the lowest down payment possible. However, that’s not always the best mortgage advice. It depends on your situation. In some cases, making a bigger down payment is actually the best policy. This way, you avoid the trap of slipping into negative equity, and you always have money you can draw on in your home if you need it. Moreover, when you have a large down payment, the length of time that it takes to pay off the mortgage is lower.
Get A Land Survey
Even if the vendor tells you that they’ve done a land survey, do your own. You never know that boundary issues might crop up with a proper legal search. Remember, if there are problems with the boundaries, they can cost a fortune to fix and could take many years of legal wrangling. Therefore, you want to avoid them before making any purchases.
Check The Local Development Plans
The last thing you want is to move into a home and discover that there are ongoing development plans in the area. Waking up every morning to the sound of machinery is not a pleasant experience.
Always do your due diligence. Check local planning applications to see what builders have in store for the area.
Keep Some Cash Back For Home Improvements
You never quite know how life will pan out. That’s why it’s always a good idea to keep some cash in reserve for home improvements. Having a reserve fund lets you invest in extensions or make significant renovations. To keep this option open, you may have to reduce the size of the property you buy.
Only Commit When You’re Ready
Lastly, avoid committing to a property before you are ready. If you have an unstable income or you can’t yet afford the monthly repayments, hold off the purchase. Wait until you’re in a position where you can actually afford the property before you take the plunge.
