Well, we have all been in that place – dreaming about buying your first home. But what if dreams come true? Oh, the thought of knowing how to plan to buy your first home just gives our heart a leap, isn’t it?
Yes, that’s what happens when you go ahead to buy your first home!
Out of the fun and ecstasy to buy the first home on our own, we tend to miss out on many major details, which makes us regret our decision in the near future.
Knowing how to plan to buy your first home takes you to a new milestone (obviously one of the biggest ones!) but with that, comes a lot of responsibilities – it’s quite a big thing to commit for!
But don’t fret – because we are here to give you solutions (not create problems), and help you with a guide on how to plan to buy your first home!
Well, we know – planning isn’t everyone’s cup of tea, but we have got you covered. So, we have come up with some of the best answers to your question about – how to plan to buy your first home.
Tips On How to Plan to Buy Your First Home
Here we have a handful tips for you on how to plan to buy your first home.
Start Planning Early (as early as you can)
There certainly isn’t any age to start knowing how to plan to buy your first home but we suggest to start thinking about how to plan to buy your first home early. We understand that not everyone’s success ages and the path isn’t the same but the earlier you start, the easier it gets.
- You can get more time to save money
- You can try out several jobs to save money
- You can avail of a loan for more years
Even if you are opting for a loan that needs to be planned – like which bank you’ll be opting for and how much interest you can afford.
Moreover, planning early brings you into a habit of sensible money handling, and restricts your mind from making impulsive financial decisions.
Know What You’re Saving For
Well, you want to buy a house – but which type; a condo, or an apartment, or a bungalow? It is important to decide how to plan to buy your first home and what type of house you want to purchase before you fix it on a budget. Each of the types has a variety of price ranges and once you know what you are buying, it’s easier to save for it.
Moreover, knowing what you want to purchase helps you to carry on the research and gives you much more time to find the ideal house for yourself.
Fix Your Budget
Once you know how to plan to buy your first home and what type of house you want to settle for, fixing a budget becomes easier. Before you settle for any house, make sure how much you can spend on it.
Begin by considering your income and marking down your expenses, and then think – how much you can save for your dream home.
Sometimes, some houses might feel like your dream home, but completely out of your budget – and that’s when you need to take control of your will. Don’t let your emotions come between your budget, otherwise, you’ll surely make a mess out of your life.
Come Up With An Extra Income Source
Well, your full-time job’s salary might go behind the compulsory expenses and life’s savings. How about taking up some extra jobs for money?
Well, the options are great. You can do freelancing, pick up a part-time job at a cafe or a restaurant, or babysitting. Any job that hands you out a decent amount of money is a great option while you think about how to plan to buy your first home.
Getting the extra income will increase your savings steadily, thus helping you achieve your goal sooner.
Think about Investing
Do you want to step into a dream home when you’re retired and old? Probably no. Then, don’t just save your money and keep it stuck – but rather, go ahead and invest it wisely so that it grows faster.
There is no reason why you would want to keep your money stuck in your savings account for long without reaping any benefits from it. Instead, you can always invest in mutual funds or fixed deposits to help it grow to almost double the real amount.
Consider Other Expenses
Buying a dream home might seem all dreamy but the reality is much different. Only saving money for your dream home won’t help because several expenses come along.
Expenses like registration charges, documentation, real estate agent’s charges, and so on keep on coming and there is hardly any end to it. So, when you think it’s the time to jump in, maybe it’s not.
The best suggestion we can give you is to make a list after hearty research and then go for it!
Check and Compare Loan Offers
When the time comes for you to apply for a home loan, the options will be numerous. But even then, the confusion will be at its peak because choosing an offer that offers a genuine and reasonable interest rate is tough.
Thus, we suggest you go ahead and check and compare the offers by them, and then make a decision. Having quite some options on your plate not only helps you to think logically but also aids reasonable thinking.
Also, read the papers, especially the terms and conditions correctly before you go for it. The cases of fraudulent activities are huge in number, and you certainly do not want to add up to it.
Save on some Taxes
When you are wondering about how to plan to buy your first home, only saving won’t help, and you need to do it wisely. Everybody can earn money and save it, but only a few of us can get the idea of saving on the taxes.
Well, nobody likes to pay taxes, so make such investments that would cut you some slack on the extra taxes. The first step will, however, be to apply for a home loan because they can get you some great tax relaxations – thus saving your money in the near future.
Improve the Credit Score
If you are relying on home loans to purchase your dream home, then you don’t have any other option other than to increase your credit score. When you walk in with a credit score of or above 750, they will not only be eager to offer you loans but might also lower the interest rates.
Wondering why we are recommending it for your home loan? Well, home loans last for a lifetime, and more, and if you do not want to end up paying an interest that is even more than the principal amount – then saving your credit score is the only option left with you.
Keep the Downpayment Ready
Before you begin with your house hunting procedure, it is suggested to keep the downpayment ready for your dream home.
Otherwise, when your agent sets you up with the owner, you’ll likely have to let go of it because you rested all your hopes on the loan amount.
Also, loans might take longer to process than you think, and in the meantime, if you don’t have some cash ready for booking them, you might have to let go of it – and nobody wants that!
Go for What You Can Afford
Often, amidst the ecstasy and thrill of buying your first home, you tend to step out of your grounds – but don’t do so!
Even if the house seems just like your dream home, you can’t risk future savings against a dream. Instead, we suggest you wait a bit and look around.
Taking some time will give you the scope to research more, and settle for the ideal dream home, that too, in your fixed budget.
Shortlist Real-Estate Agents
To be honest, it is really tough to get your hands on a good home with a great budget without hiring a real estate agent.
But again, you cannot just go for any one of them with a wild guess – it needs research. There are several websites, or many real estate agents have their contacts going all over the internet – all you need to do is, go ahead and shortlist some.
Once you are done shortlisting the real estate agents, you can talk with each one of them, discuss their services and their charges, and then make a decision.
Well, knowing how to plan to buy your first home itself gives you the leap from childhood to adulthood, and definitely – you are hitting a new milestone!
But it takes a lot from you to stay determined towards your dream and make efforts for it. However, we just wanted to make sure that you’re taking the right steps to fulfill your dream. We hope we did it right! What do you say?