Buying your first home is one of the biggest things you’ll ever do. However, the activity will demand your attention from the onset, from seeing prospective homes to signing endless paperwork and navigating legal constraints.
If you are an entrepreneur, the process of buying a home can be a nightmare, given the many things that are already on your plate. However, you should not feel threatened by the process. You can still buy a home easily if you plan well ahead.
Read on for some tips that will help to make the home-buying process easier.
Get Pre-Approved for a Loan Beforehand
The idea of owning a home is thrilling and can send you down a path of curiosity to begin house hunting before you are even pre-approved for a mortgage. Looking for a home when you haven’t been approved for a mortgage is a bad idea as you do not know what you can actually afford. Getting pre-approved for a loan will help you know what kind of homes you can afford.
For a mortgage, there are various options that you can pursue. For example, you can apply for FHA loans. There are also conventional loans where you may be required to pay private mortgage insurance (PMI).
Find out about the various home loans available to see what you qualify for, and what best suits your needs.
Be Honest with How Much You Can Afford
You may have found a home you can’t pass on. However, if its price is anywhere above what you can afford, think carefully and weigh the pros and cons of getting the house. The last thing you want is to buy a home only to fail to keep up with the mortgage payments.
It’s advisable to keep all your expenses; your mortgage, taxes, and insurance; at about 30% of your yearly income. Most people can pay this amount without straining too much. Moreover, you never know what the future holds. When budgeting, factor in unforeseeable circumstances such as getting laid off, sickness, or recession. If possible, have a financial safety net in place.
Work with a Reputable Realtor
When you have an idea of what you are looking for and have a budget, get a realtor to help you with the house hunting. A reputable realtor that has been in the business long enough to know the market inside out can provide invaluable insight. Experienced realtors can handle negotiations and do the legwork to ensure you get a good deal.
You also need a realtor to help you navigate the crazy paperwork and legal hoops related to buying a home, which could be overwhelming for you.
Don’t Get Too Emotional About a Deal
Many people get emotional when they see a home that they feel has everything that they need. You have to be objective, or else you could easily get yourself in a bad situation. For example, you can end up downplaying conditions that make a house a bad fit for you and your family. You could also hurt yourself by getting into a bad contract, as the owner may be able to tell you are already spellbound by the house. Being emotional could make you lose the advantage of buying the home at terms that are fair to you.
Set Aside Some Extra Money
Unless you are buying a new home, chances are that you will need to fix a thing or two. You, definitely, want a home that doesn’t need repairs. However, there are still many beautiful homes available on the market that are sold “as-is”. Just because a home requires a few renovations doesn’t mean it is in total disarray.
Most homes that need some fixing are usually sold at lower prices than their market values since the owners can’t afford to fix them. Don’t pass up the chance of viewing a home that is sold “as is”. As you plan to get your first home, set aside some money for repairs and extra expenses.
Make Time for House Hunting
As an entrepreneur, you most likely don’t have much time on your hands. Therefore, time is one of the first things you should factor into your home buying decision.
You may want to consider scheduling the home buying process at a time when you don’t have many commitments tying you down. If possible, wait until about the time you usually take your vacation leave to begin home hunting. This way, you will have the opportunity to focus primarily on the matter of looking for a house.
Purchasing a home is exciting but can also be challenging. The process is demanding, and you don’t want your attention divided if you are to get a good house. Use the tips above when looking to buy your first house.
