Are you thinking about buying your first home? This is exciting, but it can also be a little scary, especially if you are a first-time homebuyer facing a major financial commitment and a lot of new information.
From Immoserveis, in a clear and simple way, we want to inform you about what you need to know and do before buying a house.
Here are 4 tips that we hope will help you and prepare you for the purchase that will surely be one of the most important of your life.
1.- Mortgage
Getting a mortgage requires initial savings of 20-30%, depending on the type of loan and the savings you have. It is advisable to start saving by reducing expenses and creating a budget that helps you reach your goal.
Try not to take on any new financing before buying a house, as this amount will affect how much you can borrow.
2.- Set the maximum budget for the purchase
In addition to considering the monthly mortgage payments that you think are feasible based on your income, you should take into account other expenses such as insurance, local taxes (property tax, waste collection fee) and maintenance costs, such as minor repairs, electricity, gas, water consumption, etc...
Do not forget to add the costs of the Notary, the Land Registry and the taxes (property transfer tax or VAT if it is a new build) to the purchase.
3.- Obtain pre-approval for a home loan
Before looking for a house to buy, we recommend obtaining pre-approval for a home loan. The financial institution must review your documentation and approve you up to a certain amount. This not only ensures that you can achieve your goal of becoming a homeowner, but it is also attractive to home sellers! Pre-approval shows sellers that you are ready, willing and able to buy their home. In a multiple-offer situation, a pre-approved buyer may move ahead of a buyer who has not started the application process.
4.- Find the right real estate agent
Good real estate agents understand the current property market. They know the neighbourhoods, the housing inventory, how to compare homes and help you make a decision, and how to present your best offer to a seller and negotiate in your interest. They will also guide you through the entire buying process. This means you need to hire someone with knowledge and experience. You will spend a lot of time with your agent, so choose someone you will enjoy working with!