Buying a home for the first time can be a slightly overwhelming experience for first time buyers with literally tons of variables to factor in. There may be a desire to just get over the line but you shouldn’t rush through the process as it is something you could regret for years to come.
Shop extensively for mortgage rates
In order to get the best mortgage rates, you may need to comb through a fair share of options to get the best possible rate. It can be an exhausting option and involve some significant time commitment but saving one or half a percentage point could translate to savings of tens of thousands of dollars over the years. Patience breeds results here so be prepared to have thick skin and comb through your options before arriving at a decision.
Buy less than what you can afford
Underbuying has become a popular practice in the post-recession era as it has several financial benefits. For starters, you’ll be able to pay off your mortgage faster, and you’ll have to pay smaller amounts of your salary as mortgage. In addition, it will provide you with a greater degree of financial flexibility. You could also devote more resources for repairs, upgrades, and maintenance if you underbuy. Don’t focus on how much a bank is willing to give you but focus on how much you can easily pay off within a short time period.
Don’t be turned off by poor aesthetics
If a home looks plain ugly due to poor or worn out paints, creaking utilities, or general messiness, don’t be turned off by it unless it requires significant upgrades. This is because such houses are likely to be ignored by prospective buyers especially in upmarket areas where aesthetics count for a lot. You can always improve aesthetics on the cheap after purchase and you can even negotiate a far lower price if the home looks sufficiently jarring. As long as a home is structurally sound and has no major defects, you can afford to turn a blind eye to poor aesthetics.