Things you should know before becoming a homeowner - The Maritime Financial Group
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Things you should know before becoming a homeowner

Things you should know before becoming a homeowner

Buying a home is one of the most significant financial decisions you will ever make. It can also be one of the most intimidating decisions. There are so many things to consider: choosing the right home, financing, insurance… and can you even afford it? We’re here to discuss all these issues and –hopefully –to help you make the best possible decision.

Set a Realistic Budget Things you should know before becoming a homeowner

Every homeowning decision you make will be governed by one factor: what can you afford? Many people determine their homebuying budget by simply looking at their salary. However, this isn’t good enough. Of course, you need to consider your salary and any other streams of income you may have. But then you must factor in your monthly expenses and any debts. You should also ensure that you have rainy day savings. There may be unexpected expenses as your buy your first home and you need to ensure that you have enough money to steer you through this challenging time.

Identify Trusted Real Estate Agents

Many people turn to experts to guide them along the path to homeownership and choosing the right real estate agent is one of the most important steps. A good real estate agent will help you identify any potential problems with the properties you view, help you negotiate the best price and answer all your questions. To find your perfect realtor, you can start by conducting a simple Google search. Many real estate agencies also have social media pages where customers can leave reviews and these may be helpful in guiding your decision. Next, talk to friends and family members who purchased a property. Did they use a particular realtor? Were they happy with the service provided?

Identify your Priorities

Things you should know before becoming a homeowner
Do you envisage a life with two kids, a big yard and a dog? Or are you a career-driven person who wants to live close to your job? Determining the most important factors in your dream house will help you to engage in a targeted search. You can even create a list of priorities, which begins with your most important priority as number one and then lists your other priorities in descending order. If you’re purchasing a house with your partner, you should make this list together so that you’re both on the same page.

Plan for the Future

When identifying your priorities, don’t just determine what’s important to you now. Think about the type of life you want to have in the future. Maybe it’s just the two of you now—but if you plan to have a big family one day, then a one-bedroom apartment may not cut it.

Decide Whether you want to Build or Buy a Home

There are pros and cons to building and buying. If you’re building a home, you’ll be able to design and construct your dream house and modern building techniques mean there’ll be a lower of harmful building practices, like the use of asbestos. However, the timeframe to completion is much longer than buying and there’s a greater chance of cost increases. You’ll also still need to engage a real estate agent to buy the land for the house.
Buying a home is quicker and more convenient than building. There are also fewer chances of hidden costs. However, to ensure that the home you’re buying is of good quality, you should conduct a professional home inspection before purchase. It’s also possible to customize an already-constructed home to suit your needs, but this will come at an increased cost.

Access any Benefits

The Inland Revenue Division allows first time homeowners to claim benefits. If you can get any money back, this will only help you out.

Consider Insurance Things you should know before becoming a homeowner

Some people only factor in the cost of buying or building a home. However, insuring your property is critical. All mortgages require that the property be insured. Also, after you’ve worked so hard to get your home, you’ll want to ensure that your property is protected. Look into the different types of insurance and determine which option best suits your needs.

Identify Available Financing Options

I know what you’re thinking –wasn’t this the first point you raised? Actually no, the first thing we asked you to consider is how much you could afford. However, you need to determine what sort of mortgage you qualify for and which is the best institution to give you a loan. As with the real estate agent, you can start with a simple Google search. Next, make appointments to talk to different institutions .Assess each institution based on the type of mortgage they will offer you, as well as responsiveness, helpfulness and any perks offered. You will be dealing with your mortgage provider for many years; so, you need to be completely comfortable with your choice.

Take your Time

Finally, remember that you should take all the time you need to make these decisions. Anyone who tries to rush you or pressure you to make a certain decision isn’t on your side. You need to be completely comfortable with the huge commitment of owning a home. If you have any questions, you can always reach out to a financial advisor.