Guide to First Time Home Buyer
Running and managing a household is as stressful as the process of buying a home. You will be overwhelmed with the lengthy process of it and would probably give up and end up renting a place for you and your family. It requires you to have enough knowledge, resources, and time in order to secure a decent home that suits your needs. To be able to assist you in your big move, here are some tips to help you with your research process:
Set your budget
Your budget is the most important thing after the type of home and neighborhood you want to settle in. This is what will define what you can and cannot afford. It is also important to have savings beforehand since you need to secure a downpayment first.
List down all your expenses, savings, income, and future expenses that come in owning a house and check which you can afford in your options. Most experts advise that you allocate at least 30% of your monthly household income for your mortgage alone.
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Set your budget
Your budget is the most important thing after the type of home and neighborhood you want to settle in. This is what will define what you can and cannot afford. It is also important to have savings beforehand since you need to secure a downpayment first.
List down all your expenses, savings, income, and future expenses that come in owning a house and check which you can afford in your options. Most experts advise that you allocate at least 30% of your monthly household income for your mortgage alone.
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Identify the type of home that suits your needs
Are you looking for a condo unit? A townhouse? A pre-owned house? Or a brand new house? These are some of your options in your house hunting but these all serve different purposes. Are you looking for a place wherein you can raise your kids? Or use it as an investment in the future? Do you like the hustle of doing major repairs, repainting, and renovation? Or are you the type of person who doesn’t want to spend extra money on the aforementioned activities?
Examine first your needs then weigh in your options.
Identify the type of home that suits your needs
Are you looking for a condo unit? A townhouse? A pre-owned house? Or a brand new house? These are some of your options in your house hunting but these all serve different purposes. Are you looking for a place wherein you can raise your kids? Or use it as an investment in the future? Do you like the hustle of doing major repairs, repainting, and renovation? Or are you the type of person who doesn’t want to spend extra money on the aforementioned activities?
Examine first your needs then weigh in your options.
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Look for a real estate agent
Before transacting with someone, make sure that you have a registered real estate agent who will guide and give you advice during the process. You need a lot of patience in dealing with paper works because there will be a TON of documents you need to process. Make sure that you have someone you trust and someone who knows the workaround in processing legal documents.
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Look for a real estate agent
Before transacting with someone, make sure that you have a registered real estate agent who will guide and give you advice during the process. You need a lot of patience in dealing with paper works because there will be a TON of documents you need to process. Make sure that you have someone you trust and someone who knows the workaround in processing legal documents.
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Secure financing
If you don’t have the means to fully pay for your house on the spot, you need to secure financing whether from a bank or from a developer. Apply for a home loan from your trusted bank, PAG-IBIG/ GSIS, or you can apply for in-house financing. The latter will be more costly to you since the interest rates are normally higher for in-house financing compared to the first two. You can look for their partner banks for ease in application.
Again, if you need loans, you are required to pay for a downpayment first so make sure you saved up for the downpayment. The amount of downpayment depends on different factors such as your creditworthiness and bank terms.
Secure financing
If you don’t have the means to fully pay for your house on the spot, you need to secure financing whether from a bank or from a developer. Apply for a home loan from your trusted bank, PAG-IBIG/ GSIS, or you can apply for in-house financing. The latter will be more costly to you since the interest rates are normally higher for in-house financing compared to the first two. You can look for their partner banks for ease in application.
Again, if you need loans, you are required to pay for a downpayment first so make sure you saved up for the downpayment. The amount of downpayment depends on different factors such as your creditworthiness and bank terms.
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Think long-term
Buying a house is not a small investment since the price of the investment starts with a minimum of a 7-digit figure, depending on the type of house or space you want. The normal loan tenor that the majority of investors look at is 10 years so you need to be mentally prepared that you will carry this in your expense list for quite some time. If you’re buying a house for future investments, research more on the real estate market to know if your property will have a higher value in the future.
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Think long-term
Buying a house is not a small investment since the price of the investment starts with a minimum of a 7-digit figure, depending on the type of house or space you want. The normal loan tenor that the majority of investors look at is 10 years so you need to be mentally prepared that you will carry this in your expense list for quite some time. If you’re buying a house for future investments, research more on the real estate market to know if your property will have a higher value in the future.
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Adulting can be scary to some since you are now thinking about your future more and investing in the right pieces, properties, and types of investments so you can attain your dreams and goals in life. Some start in buying a car, some start in buying a property that they could call their own, some start with marriage, or some probably start by managing their own finances and bills. But no matter what it is, remember to have a checklist beforehand so you won’t be shocked by your financial problems in the future. And always remember that you have bank that you can lean on when you’re decided to take a big leap in life.
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