A new beginning: Financial Resolutions to buy that dream home this New Year

Every New Year brings with it a slew of resolutions, some of which are unable to be fulfilled. This year, fulfil your resolution of buying your dream home. We have listed 10 tips which would help in buying the home and what to do after you have made the purchase:

1. Curb on expenditures:

It is not advisable to make any major expenditure three to six months before taking a loan. This could adversely affect your credit score which determines your reliability. Lenders need to make sure that you are reliable and would want to see a complete paper trail as proof.

2. Get pre-approved in your home loan:

Make sure your lender has pre-approved you, not just pre-qualified. Anyone is able to get pre-qualified; pre-approval on home loans means that a lender has looked at all of our financial statements and has provided you with the amount they will be able to lend. Being pre-approved would mean that you would not waste time looking at houses which are out of your budget as well as shop for the best home loan deals and interest rates.

3. Avoid conflicts about borders:

It is important to get a survey done on your property so you know exactly what belongs to you to avoid any disputes from neighbours. Property tax is charged on the amount of property you own, so it is good to have an accurate map drawn.

4. Avoid timing the market:

Gauging the home buying market is nearly impossible and anticipating when the price would drop is a futile attempt. The best time to buy your home is when you find one you like and is within your budget. Waiting for the perfect time will most likely result in losing out on the deal you have at present.

5. Size isn’t everything:

While big houses have a very obvious draw, it is not advisable to buy the biggest and best house on the block. Big houses appeal to only a small section of the population which could be problematic in the event you look to sell. Bigger houses also appreciate lesser than smaller houses do over time.

6. Sleeper costs:

While most people focus on repaying their mortgage, they forget the sleeper costs such as property taxes, utility and homeowner-association dues. Homeowners need to also be prepared to pay for repairs and potential property-tax increases.

7. Don’t go with your heart:

It may be a common feeling to want to buy the home which appeals the most to you but your emotions should not be the deciding factor. Go with your instincts, towards a good house at a great deal instead of looking at houses which satisfy all your aesthetic needs such as a swimming pool or a backyard.

8. Inspect the house:

Hire a home inspector to give your new property a close examination. While this will cost you it has the potential to save you thousands. The home inspector’s role is to inform you whether the property is a good investment and is the only way to get an unbiased third party opinion. Any flaws found by the inspector can be used as a bargaining tool to reduce the price of the home.

9. Think before you bid:

The opening bid you make for the home should be based on what you can afford as well as what the current market situation. While most people would think about opening the bid low, it is important to know that a very low bid would offend the seller, making the chance of a sale harder. Also, making a bid with a specific amount instead of a round figure catches the attention of the seller and gives the impression that you have seriously considered the offer.

10. Scope the neighbourhood:

Before settling on the home, learn about the neighbourhood and get the lay of the land. Visit the property at different times of the day, ask around the neighbourhood and find the different amenities available close to the residence. Make sure you are completely happy with the property before buying. Following these steps would ensure that you eliminate most, if not all, of your home buying woes. Ring in the New Year in your new home!

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