Buying your first house is exciting. While your initial instinct upon deciding to buy a home may be to scour the internet to see what’s available , approaching the whole process with a plan in place can make it an easier and less stressful experience.
Instead of jumping in head first, let’s take a look at some of the things you should consider before making the big leap.
Assess Your Debt & Credit
Do you have existing loans and credit card debts? While this doesn’t mean that you’re not ready to be a homeowner, you need to know your financial standing to avoid getting caught in a difficult situation.
Try to lessen these by clearing as much as you can. This will reduce your monthly payments and stress once you make your purchase. It’s also better for your credit score when applying for a mortgage.
What’s Your Budget?
In the euphoria of finding the perfect property to purchase, some ‘hidden’ expenses may escape your attention, so it’s important that these go on your list of considerations.
Apart from your future down payment and mortgage, there will be other bills you’ll have to take into account, such as renovation costs, utilities, property tax, home insurance, and maintenance fees, to name a few. Figure out a comfortable amount that you can additionally put aside monthly for this purpose.
Choosing the Right One
Based on your budget, choose the type of property you can afford. Tempting as it may be, don’t go down the ‘it’s only slightly over budget’ route.
Location, Location, Location
Of course, the prices of properties depend on their location. While you may be able to afford a huge house in more rural areas, is that where you want to live? How far is it from the life you have now? Will it be feasible for you to commute to work or do the things you need to do daily? Does it have amenities close by?
These are just some of the questions you should seriously consider before putting pen to paper.
Do Your Research
As much as possible, check on the history of the property. If it’s a new development, dig into the reputation of the developer and their past developments. Whenever possible, inspect the property carefully and take note of potential problem areas and how much it would cost to address these problems. Bring an expert along with you if that’s an option.
While there are many things to keep in mind before buying your first home, securing the financing for it is what will make your dreams a reality. Maybank Islamic’s HouzKEY is a homeownership solution available for specific properties offered by partnering developers. Homebuyers get to enjoy 100%* financing with no down payment required, no payment during the construction period, and a low monthly payment.
Making sure you have a plan in place will ensure a more pleasant experience in your search for the perfect home. So do your due diligence, take that next step, and enjoy the exciting journey into being a property owner.