Buying a home, especially for the first time is somewhat daunting, there are several factors to consider when purchasing a home and it is vital that you consider them carefully. Rushing into a house purchase is certainly not advisable, it makes sense to take the time to analyse the various factors before you make the decision to go ahead. 

Here are some of the things that you should consider when purchasing a home, take them into consideration before taking the momentous step to invest in a property.

Finances 

When purchasing a home you should consider your finances, analyze your expenditure and examine your income. Once you have a good idea of how much you actually have to spend on a home you can begin to figure out whether you want to purchase in cash or buy the property with a mortgage.

Credit score 

If you decide to get a mortgage, you would need to find out your credit score. Your score will determine the type of mortgage you can get. If your credit score is significantly low, you might have to take the necessary steps to improve your credit score. There are many services available that can facilitate the process of improving your credit score. 

If you would rather go down the DIY route, you can analyze your debts and create a plan to start paying them off. If you have a credit card you can begin using your credit card to improve your credit score.   

If you have a large balance to pay off, pay it off and then use your credit card to buy everyday essentials and pay the balance immediately. This is a very effective way of improving your credit score in a short period of time.

Location

Location is an important factor to consider when purchasing a property. The location you choose will determine the cost of the property, if you want to live in a big city the cost will be significantly higher than if you were to live in the suburbs. It is advisable to spend a significant amount of time in the locations that you prefer. Make a list of three preferred locations and if you can, spend at least a week in each area to determine which area you would prefer to live in.

Budget 

Once you have decided where you would like to live, it is time to figure out how much you can afford to spend on a new home. Factor in the cost of stamp duty property tax and various other costs that you will incur when purchasing a property. Deciding on your budget will also determine the size, age, and location of the property. For example, if you are looking for homes for sale in South Jordan, check if the property prices in South Jordan fall within your budget. 

Financing 

Financing will not apply to you if you are buying your house in cash however if you want to buy your house with a mortgage you will need to choose a mortgage service provider. Your first port of call might be your bank, or if you purchase a brand new property from a developer the developer can provide financing through a financial institution. Make sure you choose the right mortgage to suit your specific needs and budget. 

You don't want to find yourself in a difficult financial situation where you cannot afford to make the repayments because of a misjudgement in affordability.

Type of property 

What type of property do you want? Do you want a townhouse? An apartment? A bungalow? Also, would you prefer a new-build property or an older property that you can fix up? You can also purchase a lot and build your own custom property as opposed to purchasing a ready built structure.

How many Bedrooms? 

How many bedrooms would you like? Choose Wisely here because often first time buyers overestimate the need for more space. For example, a couple buying their first house ends up buying a  five-bedroom property instead of a  cheaper three-bedroom house. 

 They later realize that they could have saved money and purchased a smaller, cheaper property. Therefore, think this through very carefully when you are deciding how many bedrooms you need in a property.

Make a list of must-haves

When buying a property you do need to leave some room for compromise however, you should create a list of must-haves, these are things that you will definitely not compromise on. For example, if you have young children and you definitely do not want to compromise on outdoor space, then put that on your must-have list. 

You must also write a list of things that you are willing to compromise on. Remember that it is quite rare to find the perfect property therefore, you might have to compromise on something when it comes to buying a property.

Price 

Remember that there is always room for negotiation when it comes to property price so if you find a property that you absolutely love, don’t give up on it because of the price. You can put an offer in to see if the seller would be willing to reduce the price. Usually, when a property has been on sale for a long period of time the seller is more likely to compromise on price. Don't shy away from negotiations. In fact never offer the asking price, always negotiate down.

Inspection 

Hire a surveyor to thoroughly survey the property that you want to buy. You would need to factor the cost of paying the surveying fees into your budget.

 A professional surveyor will thoroughly inspect the property and provide you with a comprehensive report. This report will determine whether or not the mortgage company will provide you with the financing that you want to buy the property. Sometimes the survey report fails to meet the requirements of the mortgage company therefore, they might offer you a lower amount or advise that you search for a different property.

You will certainly face challenges when purchasing a property, especially if it is your first time buying a home. However, if you take your time and consider all or some of the things outlined in this article you should be able to overcome the challenges that are often associated with buying a home.

*This is a collaborative post*