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8 Important Things You Can't Overlook Before Buying Your Dream Home

Many of today’s first-time homebuyers are millennials — the generations born in the ’80s and ’90s who are starting new families, and making the key decision of buying a home for the first time. We millennials grew up at a time when real estate in the country started booming and we have vividly witnessed housing market’s volatility. As millennials, each of us may be wondering what new rules apply in this evolving real estate realm? Luckily, the “new rules” are similar to the tried and tested rules of our previous generations.

If you can’t afford the home, don’t buy it!

Societal pressures may make you plunge into buying a home even if you are not ready. If your job security is in question and your industry is flat, take your time and buy only if you can afford it.

Now that you have decided to buy a home, make an informed decision!

Take your time to research and learn about the nitty-gritty aspects of localities and get expert advice from your referral group and online sites like commonfloor.com – which offer every intricate detail about home buying. Always remember, while buying a home, you are buying a whole neighbourhood. Hence, consider neighbourhood as one of the major criteria in decision making.

A smaller, practical, easy-to-maintain house is the new, big mansion

Buy a house which is easier to maintain as it practically makes sense when compared to a big house. Always remember that optimum is the best in today’s world! Explore Properties below 800 sq ft.

Don’t overpay for a house hoping that market appreciation would increase its price

Don’t expect the market to appreciate immediately and create more value in your home and overpay for a house that you really can’t afford. It is always better to be informed about market prices with the help of expert sites like commonfloor.com or it’s always safe to have a broker to help you out in the process.

Look at buying properties with a traditional long term 15-30 year loan

Avoid short term finances and loans, and follow the conventional approach of splitting your amount over a long period of time. Short term loans might affect your capital – as you invest the entire capital in one project at once. Also, the interest rate for short term loans are more when compared with long term loans. Top Banks With Best Home Loan Rates.

Always ensure that you make a down payment of 20% of the purchase price

It’s always good to pay a good 20% of the purchasing price of the house as down payment and not depend on the loan as a whole. By paying 20% down payment, you will save your money and also the EMI payments will be lower.

Stop being impatient while you are waiting for your loan to come through

Considering the umpteen number of background checks and the credit score checks, ensure that you maintain good financial records, and be patient throughout the process. Also, ensure that you actively manage your credit card payments and any other loan payments without missing payments – as they would lower your credit score. Maintaining a good credit score (above 750) makes it easier to get a home loan. Learn More About Home Loan Rates.

Buying a home is not the only cost you would incur, there’s more! 

You need to budget for all the costs of homeownership which includes the monthly EMI payment, property taxes, property insurance and even an emergency repair fund.

In this new era, millennials simply need to take a cue from the past to have a secured and safe future – especially, when it comes to purchasing a house.

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