Buying Your First Home? Vital Things To Consider

Last Updated on July 9, 2024 by Joshua Isibor

If you’re feeling fed up with the downfalls of being a tenant and feel you’re finally ready to settle down by buying a property, It’s crucial to do as much research as possible before sealing the deal.

While there are several appealing benefits of buying a home, like achieving living stability, pride of ownership, value appreciation, tax benefits, and the freedom to modify and renovate your home, there are also several vital things you will need to consider.

So, consider these factors before you start house hunting and browsing New Hampshire real estate.

The Costs Of Owning A Home

Of course, you already know you’ll need to make monthly mortgage loan repayments to hold onto your asset. However, there are several other costs associated with owning a home that you must also budget for right from the get-go. If you don’t, you might end up buying a home that you can’t afford in the long run.

In addition to mortgage loan repayments, you must also budget for utilities, property taxes, maintenance, potential repair costs, and home insurance.

House Hunting For Red Flags

Once you know all the relevant costs, you’ll also need to know how to avoid a bad buy. It can be absolutely devastating for a first-time buyer to purchase property in a lousy neighborhood or end up trapped in a home that’s falling apart faster than it can be fixed.

When it comes to the neighborhood, look out for dilapidated homes in the area, shabby curb appeal, and neglected roads.

At the same time, when viewing a property, look for signs of poor drainage, dampness, structural concerns, and electrical wiring problems. To confirm the true condition of a property, it’s always best to opt for a professional home inspection before closing the deal.

The Initial Costs

There are also initial costs or upfront expenses to budget for when buying a home. These costs include your down payment, which should be a minimum of 10-15% of the mortgage loan total. In addition, you’ll also need to save for mortgage commission or application fees, transfer fees, legal fees, and home appraisal fees.

Property Suitability Over Time

Buying a home is a lengthy financial responsibility; it often takes up to 30 years to repay a mortgage loan. So, it’s essential that you purchase a property that’s suitable now and for the future.

Decide how long you’ll want to live in the home and consider your personal and career goals. If you want to have a family, consider a home size that can accommodate this goal.

Maintenance Needs

Some properties will require a lot more maintenance than others. For example, apartments won’t demand too much from you because you’ll be paying a levy to the building management to assist with all exterior property maintenance and repairs.

But if you purchase a free-standing home, it’s essential to consider the maintenance needs and costs. A rule of thumb is that property maintenance typically costs about 1% of the home’s total value.

Originally posted 2022-09-01 11:24:05.