Money India

Thinking of buying your first house?

Okay, so you have come to a point in life where you need to make the big decision. Buying yourself a house that you can call “Sweet Home“, ready to bid goodbye to the shrieking landlords and be ready to bask in the pride of ownership. Believe me, it can be the most daunting task to buy a house for first timers at least. In fact, it can be more daunting than finding your perfect groom!

With considerable amount of research and preparations, it is not really such a scary proposition after all. With a little extra effort of lapping up on information, doing your homework well, you could land yourself a magical deal! With a little help, and exercising prudence, generations would benefit from this one decision, as it usually happens that property plays an heirloom in most families.

Many factors come into play when deciding to buy a house. Here are few tips that would guide you in this process.

Are you mentally and financially prepared to make the purchase?
Being mentally prepared is still easy, because by now it has settled that you need to buy your own home as it has been reiterated to you for the umpteenth time that its time to do so. Having made that decision, one still needs to rethink and strategize a bit further. Delve a little and ask yourself these questions:

• Do you have any budget constraints?
• Do you have a steady and regular source of income?
• Do you have a job or business, good enough to sustain your expenses?
• Are you planning to live in that area for a few years to come?
• Most importantly, weigh your affordability. Do you have enough funds to make a down payment?

Although many mortgage programs are available, research reveals that your total payout on repayment of loan including interest and tax should not exceed 30-40 percent of your total monthly income. Larger the amount of the down payment, lesser the amount of your mortgage. So, weigh all your options before you dive in.

After much deliberation, one is able to make judicial use of one’s funds. Mental preparation is paramount. Rest assured, with the right guidance your home will prove to be a valuable asset.

Explore, Research and define your search
By now it has sunk in that you need to put aside a certain amount of funds towards purchasing your house. Next step is to find out what is available, what kind of neighborhood you want, what kind of housing are you looking for – condo, single unit apartment, a builder’s floor, a flat or a bungalow. Most importantly, a preliminary sweep of the immediate vicinity is vital. That would give you an idea of defining your search parameters in terms of safety, distances from work place or market place, basic amenities, etc. Survey your surroundings. Is there a park? If you have kids, how far is the school? Take all these factors into consideration.

Again planned research is the key. The most common tool is of course to surf the web to find the kind of abode you are planning to buy. This kind of preliminary search gives one an idea of the kind of vicinity, neighborhood, etc and in some cases with the help of web-based tools such as google maps even aerial views of the area you plan to live in. With all this information just a mouse click away, you would have figured out by now where and what are you looking for. That done, it would be a good idea to get in touch with an agent, preferably someone whom you know and most importantly, who listens to you and understands your needs.

By now you know that you are almost there and just a few steps away from owning your dream home!

Time to explore and narrow down your search
Given that your agent by now understands your needs and exact requirements, he should be showing you homes that fit your particular parameters. It’s time to narrow down your search in terms of the features of the house that suit you best. Features like a backyard, garage, basement, single or double bedroom etc. That done, make sure you don’t look at to many houses in a single day, chances are you would be confused and would not remember the specific details. Best would be to carry a camera (or a mobile with camera phone as is very common these days) and take pictures for future previews before making your decision. Or you could even carry a paper notebook for jotting down some key points regarding the specific properties.

Now you would want to zero down on a couple of houses that suits and fits your parameters.

Thorough home inspection and negotiation
Once you have finalised the house you are interested in buying (after much deliberation of course)., it is now time to do a thorough inspection of the entire house and immediate vicinity. This would help you uncover and detect major or minor defects, which need to be fixed. Discuss with the seller all the details and ask him or her to either lower the cost or pay for the repairs.

According to Reggie Marston, a home inspector “A home inspection should uncover defects that could become very costly to repair after (buyers) assume ownership,” he says. “It will also uncover safety issues, water infiltration issues, roof problems, structural issues, etc”.

This way, you save yourself time and unnecessary expenses. Try to negotiate further with the seller, to get full worth of your money. After all, it’s not every month one goes house shopping.

Time to close the deal on the house
Having completed all the major work, it’s time to close the deal and finally move in. Phew! By now you know it was all well worth the efforts. Now comes the documentation of the deal which should be reviewed by an attorney. The closing paperwork should be thoroughly reviewed by your attorney to make sure that it is in your best interests.

Having labored so hard, it is time indeed to relish and enjoy your new sweet home.