Home Buyer’s Checklist: Things You Need Before Buying Your First Home
Buying your first home isn’t just about finding a beautiful place that suits your needs. You have to do your homework before you start looking at houses, houses, and more houses. Here’s a list of things that most first-time home buyers typically overlook.
FINANCING
Know your budget.
It’s important to have a realistic idea of how much you can afford to spend on a home. In addition to the purchase price, there are also other associated costs such as home insurance, property taxes, electricity and water installation, homeowner association fees, and repair/maintenance costs. Make sure to factor all of these when determining your budget.
Shop around for the right home loan.
Not all home loans are created equal. Shop around and compare interest rates and terms before setting on a loan.
Get pre-approved for a home loan.
Before you start seriously shopping for a home, it’s important to get pre-approval for a home loan. This will give you an idea of how much money the bank is willing to lend you, and what your monthly mortgage payments will be.
PHYSICAL ASPECTS
Find the right home in the right neighborhood.
Once you know how much you can afford to spend, it’s time to start shopping for your dream home. Consider your needs and wants, and make sure to find a home in a neighborhood that you feel comfortable with.
Check out access to public transportation, or if there are any slaughterhouse, piggery or poultry nearby. Find out if there is an adequate water supply or if there are any frequent power interruptions in the area. You might also want to check if the internet connection and the data signal is strong, especially if you consider working from home. Ask around whether it could potentially be a flood-prone area and if there’s a regular garbage collection schedule.
Decide on the right home type for you.
Decide whether you need a condo or a house and lot. Majority of Filipinos want a house and lot, and for good reason. Unlike condominiums and flats, where your options for remodeling are more constrained, it allows you the opportunity to make home changes. Additionally, it allows you more privacy. However, if you’d prefer living within the central business district, a condominium unit might be a better option for you.
READ: Condo vs House: Not sure whether to buy a condominium or a house?
REAL ESTATE BROKER
Here in the Philippines, it is not a common practice to hire real estate brokers. Most homebuyers just take on the burden of calculating expenses, haggling over the price, and completing documentation. Even though this can be successful, hiring a real estate broker can make the process easier for you.
You may get assistance from a licensed real estate professional since they can walk you through the procedure and clarify important information like property values and related taxes. Additionally, he or she can handle the paperwork related to the title transfer.
Hire a real estate broker if you feel you don’t have the time to deal with the details of the transaction or if you want to be sure of the actions you do.
READ: Real Estate Advise from Realtors to First Time Home Buyers
HOME INSPECTION
Get a home inspection.
Once you’ve narrowed down your list of potential homes, it’s important to get a professional home inspection to check for any hidden problems or defects. Take time to do ocular inspections of the house models, the subdivision and its amenities.
