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Whether you are in the process of purchasing your first home or looking for guidance during the initial steps of this journey, it is normal to feel stressed about what-s ahead. However, with the right help from professionals in the sector and tips to avoid common pitfalls, you can take the next steps with confidence, secure the best property for your needs, and begin turning a house into your home. In the guide below, we’ll look at some key strategies to avoid mistakes that can affect the buying process and the value of your investment, so that you can sign a contract with the peace of mind you deserve. Let’s dive in.
Don’t Skip the Surveyor
While it may be tempting to fall for marketing strategies or rushing through the buying process, it is important to protect your financial safety as you buy a home. After all, this is a large expense: when done well, it can turn into an investment with considerable ROI – but when done wrongly, it can throw your finances off balance.
To avoid investing in a property that is not worth its price or that requires significant structural upgrades, be sure to never skip the surveyor. If you are not sure how to get started, a Survey Match is a smart first step that can help put you in contact with an accredited professional.
Understand Your Finances
As you prepare to buy a home, it is essential to take stock of your finances to know how much you can comfortably invest. While every buyer’s situation is unique, there are some key indicators that can help you better understand if you are prepared for the next steps. These may include:
- Debt-to-income ratio: Percentage of income for debts. This ratio should be 36% or less.
- Credit score: This number reflects your credit history. It should be at least 620 (700+ is ideal) to apply for a mortgage.
- Down payment: This refers to the initial cash available to pay upfront. Consider at least 20% of the property’s house price.
- Savings: You may also want to assess how much you have saved for emergencies, which should cover 3–6 months of expenses.
- Loan pre-approval: Get this before going home shopping – it gives you a clear indication of how much you can afford to spend!
Research the Neighborhood
Before investing in a home, be sure to research the local neighbourhood and assess the area you want to move to. You may want to take into account aspects such as crime rates, local schools or childcare facilities, accessibility to groceries shopping and other facilities, and green areas. If you are not sure whether the area is for you, consider spending some time there and asking other residents for their opinion and experiences. This background research won’t go wasted!
Avoid Rushing the Process
Last but not least, don’t fall for the trap of having to rush through the process. Take as long as you need to review all of the important aspects before signing the contract and read the fine print to avoid surprises later on. Keep in mind that partnering with an expert can help here!
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