Tips for First-Time Buyers in Park Ridge
Buying your first home is very exciting and very scary! It is probably the biggest single investment you will ever make and there are lots of stories of people falling into debt or their homes being repossessed. Spending some time looking at your options before you commit to a house and mortgage will make you feel more confident and you will be able to relax and enjoy your new home.
The most important thing to consider is your budget. Work out how much you are currently spending and how much you will have spare. Go along to the lenders with those details, and see what they can offer. Remember that life may not go as you are planning, the interest rate may go up, you might decide to start a family or get given a pay-cut. If your mortgage payments are below your maximum limit you will be able to manage the things life throws at you without worrying. When you look at your budget remember to include the costs of taxes and insurance for the house. Check the costs of utilities for the new home – don’t just guess, check with the Realtor.
If you are debt-free or managing your debt well before you buy your first home, you will be in a better position to manage a mortgage. Your credit score will be good so you may be able to access better interest rates. If your debt is not well controlled it might be worth seeking some advice before looking at a mortgage.
Once you have an idea of how much you can comfortably borrow and you are happy that you can meet the monthly payments – you can start house hunting. This is the fun part of the process! Make sure you are looking at houses that are within your budget, don’t be tempted to look over your budget or you’ll end up disappointed. If you look at a home that needs renovating or repairing, make sure there will be enough money left for the work.
The process of buying a home can take 3 months or so, so be prepared for a bit of a wait! It is a great time, making sure you have all you need for you new home. Deciding on curtain colors and furniture styles and decorating to make it yours. If you have allowed for these things in your budget you need to stick to the amounts you have allowed, if you haven’t budgeted for furniture and decorations, put up with what is already there until you have more cash or make very cheap alterations. There are plenty of ways of decorating for virtually no cost, using furniture recycling projects or rehoming friends old furniture. Decorating on a shoestring can actually be a lot of fun!
Hopefully you will have a little bit of money left when you first move in for a nice bottle of something to celebrate your fantastic new purchase! Congratulations!