The first time is always exciting- first car, first phone, first paycheck, even your first home.

But when it comes to your first home, it is always nothing short of nerve-wracking and stressful, especially since it is one of the most expensive acquisitions in your lifetime.

However, it can be rife with advantages especially when choosing to buy property either through an auction or private sale, more so when you know how to make the most out of it. 

Never rush in

Whether it’s a private sale or an auction, it is always prudent to never rush into any bargain that comes your way no matter how tempting an offer may be.  Always take time to consider all options and think things through before making one of the biggest decisions in your life such as buying a house.

Remember, investing in a home or real estate property is not a one-off deal but a long-term commitment that will cost years of mortgage repayments.

Consider your options

Ultimately the final decision is yours, however, when you find it difficult to commit to a mortgage for reasons such as financial instability or having no fixed regular income, considering alternative options by consulting financial experts can help you evaluate your current financial standing. 

Home-sharing or co-ownership 

You can explore the option to share ownership of a property, which can make you more capable of affording regular repayments and help you get by during uncertain times.

Pooling resources for shared ownership of a property together with a friend, a fellow investor, or a sibling can help take a huge portion of your budget compared to doing it by yourself.

Rentvesting

You can consider making your home purchase by converting it into an investment. Rentvesting allows you to avail of tax exemptions, as well as maintaining an investment asset and live in a location of your choice, while your investment property earns self-liquidating income.

Apartments

Investing in an apartment can become a fascinating capital growth asset. Grab one that is located on the ground floor, has a good view, and within proximity to cafés and other social areas.

Going for a full real estate deal

If you feel that you can commit to a full-length mortgage to acquire your dream home, make sure you’re guided using the following tips;

Loan eligibility

Firstly, before you start to consider starting the mortgage process, you must conduct due diligence such as ensuring that you are eligible for a home loan.

Check out all your probable home loan options

A smart thing to do is to explore and compare all potential options that could allow you to avail of a home loan. The market is a competitive one and there are several different mortgage types from fixed to variable-rate loans, investment, and interest-only loans so finding that one that suits you the most is critical.

Clear your existing debt obligations

If you are currently in debt you can find it more difficult to get approved for a home loan or you could end up getting approved for less than the amount that you expect to borrow. Clearing out any major debts before applying for a home loan increases your chances of having it approved and without questions.

But unlike credit card obligations, an outstanding educational or college loan is less bothersome.

Save up for a sizable deposit

Whenever possible, producing a high amount for deposit can allow you to borrow more and be entitled to apply for loans with lower interest rates. Just remember that whenever you take out a 5% or 10% deposit, you may be required to pay for mortgage insurance based on existing regulations for any deposit that is less than 20% of the property cost.

Factor in all associated costs

Buying a house can incur unexpected costs such as stamp duty, removalist cost, application, registration fees, and inspection reports that you need to produce on top of the cost of property purchase.

Seek expert advise

A first time home buyer can leave you overwhelmed with the entire home buying experience by seeking counsel from buyer agents, mortgage brokers, and conveyancers can help you better prepare yourself for the outcome of your home buying process.

Do your research and develop your buying strategy

It is essential to do your due diligence on any property that you would like to consider. Not everything that you see can be what it is, which is why it is important to do your research. 

A house can look sparklingly clean and strong on the outside but the interiors may require major repairs. Also, you may consider checking out the location for access to commercial establishments, access to basic utilities, etc.

Always remember that if you are a first time home buyer, make sure to always consider finding out the things that you need to understand and be aware of so you are well-prepared and avoid mistakes that can cost you more than money.