7 Foolproof Tips To Succeed at Buying a House For the First Time

There’s no other feeling in this world than having a place to call your own, right? 

A home of their own is a dream that many harbour for a big part of their life and a reality that only a lucky few are able to make come true. But did you know that the secret to buying a house as a first time home buyer is knowing the details? 

Knowing how and where you should be looking to invest in your dream home will help you land the best deal that will be worth a lifetime. That’s why we’ve listed everything you’ll possibly need to check when purchasing a home of your own for the first time. 

To make things easier we’ve also broken them down into 4 categories.

  • Preparing for the purchase  
  • Mortgage options 
  • Finding the best house
  • Avoiding first-time buyer mistakes

Preparing for the purchase

first time home buyer saving
  1. Saving for your home 

The cost you’ll have to bear to purchase a house of your own is an investment much larger than anything you would’ve imagined. That is why once you decide to purchase one, you need to save for it from the beginning. This means you might have to hold back on buying that latest iPhone or the curve screen TV you’ve always been dreaming of. Despite having saved for these for a long time, spending all that money on it when you have plans to buy a house could end up backfiring. Put a hold on the credit card installment payment option and work on boosting your credit score as well. 

Some payments you need to save for prior to your purchase are; 

  • Down payment costs
  • Moving in expenses
  • Closing costs
  • Legal fees  
  1. Estimating affordability 

After dreaming for a long time, it’s only natural that you would want a house that not only looks amazing but also feels amazing, with countless rooms and features. But in reality, you might not always be able to make this come true. Yet you can certainly find a home that is close to what you’ve wanted and fits your budget. To find such a home, start by first estimating your budget. Consider practicality, functionality and all other details that will affect your investment as a first time home buyer. 

Mortgage options 

first time home buyer and mortgage
  1. Evaluating your mortgage options

In Sri Lanka, from banks to financial institutions, you can find different types of mortgage payment plans offered in the market. The interest rates charged on these vary based on the policies of the institutions and repayment plans may be affected based on your age as well. 

To ease this process, we’ve designed a home loan comparison tool that includes information on all the mortgage schemes available in Sri Lanka. By comparing between all the options available for you will be able to select the best loan policy with the most favourable terms. 

Through the home loan comparison tool, homebuyers can adjust information on the loan value, down payment amount, loan type, purpose and their employment status to get customized loan options from different institutions in the country. 

  1. Estimating your loan budget 

A big part of selecting a housing loan is knowing how much you can afford to repay on a monthly basis. This cost will definitely be a part of your expenses from the moment you sign up for the loan and will continue on for a few 10 to 20 years or more. 

Through our home loan calculator you will not only be able to find your monthly mortgage payment but also adjust the loan period according to the property value and down payment amount, to find the best option. 

Finding the best house 

first time home buyer
  1. Location and neighborhood 

Imagine spending hours traveling back and forth from your home to the office after paying a high price to purchase a house. This is a classic example of a bad investment and you should be careful as a first time home buyer. The location where your house is and the price you pay for it should go hand in hand.

Besides this, the neighborhood and how secure it is plays a big part in how your life would be from here onwards. That is why when selecting a location for your house we recommend checking; 

  • Accessibility 
  • Security 
  • Amenities and facilities
  • Schools, hospitals, groceries etc. available in the vicinity 
  • Commuting hours
  • Lifestyle 
  • Resale value
  1. The right type of house

What type of home would work with your lifestyle? Will you give each kid their own room? Is that office room really needed? These are questions that only you can answer. Depending on your answer, the type of house that will suit your lifestyle will also differ. For some it could be a 3 bedroom house for sale that works best for them but for others it could be a 2 bedroom house for sale. 

In addition to the budget, think of space and the kind of features you feel are the most important in your home. The Sri Lankan property market is filled with different types of houses to buy like single houses, apartments, two-storied houses and multistoried houses. So you have all the options in choosing a home that matches you.  

Avoiding first time buyer mistakes 

first time home buyer mistakes
  1. Amateur mistakes

Buying your own house for the first time is exciting. It’s an investment of a lifetime and a dream come true. But with all the excitement you could end up getting side tracked and missing out on all the important details. That’s why we’ve listed out a few newbie mistakes to avoid.

  • Looking for a house before applying for mortgage
  • Not checking credit scores
  • Not evaluating different loan options 
  • Spending more than the budget
  • Miscalculating potential repair costs

If finding your dream home is a tough task to manage on your own, you can always find professionals to help in the home buying process and avoid falling for scams and amateur property buying mistakes. You can also visit LankaPropertyWeb on its Buyer Seller Assistance program that offers you customized solutions for your housing dream. 

Posted Date: 25th May 2021

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