Buying your own house to call your home for the very first time can be a daunting experience, since it is a pretty big financial step to take in life. You should never buy a house on impulse and instead take into account every little detail before making the decision. Your first time should be a good experience, so here are some things to look into to avoid a negative home buying experience.
Choose within your means
There are lots of choices out there, more than you can ever imagine. Take your time and shop around, and although you may wish for that house of your dreams, you should also keep in mind to purchase a home within your means. Usually a good rule of thumb is to keep your monthly repayment and home expenses between 25-30% of your take-home income. Remember, a smaller house is worth a peace of mind instead of spending all your income on your loan repayment and have nothing left for daily expenses and savings.
Keep tabs on your debts
Before you can apply for a housing loan, you need to sit down and take an overall look of your debts including your credit cards. There will be certain prerequisites for one to get a loan approved, since the bank you’re applying at need to ensure you will be able to pay your loan in the long term. You may also need to check your credit reports on CCRIS and CTOS to ensure you are not blacklisted or you might not be able to obtain a loan from any bank.
Shop for a loan
Just like there is a myriad of choices when it comes to choosing a house, there is also a lot of different loan packages offered by different banks. You can either get advice from your property salesman as they have lots of experience in this field, or you can just take your time and personally enquire from a few banks of choice.
Get into that saving habit
Before you can purchase a house, you will need ample amount of money for making a down payment, and other expenses. So, start saving and get into that habit of saving so that you won’t default on payments later on.
Fixture and fittings costs
Purchasing a house is not just about buying the shell, but to also fit it with things to make it a comfortable home. These things cost money and even the littlest of renovations will have considerable costs. Don’t take a loan just for this but instead, look around and find the best type of fixtures and fittings according to your budget. Owning a house is just the beginning; there is ample time to slowly decorate your house into your dream home.