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Home / Home Insurance / 6 Finance Tips for a First-time Homebuyer

6 Finance Tips for a First-time Homebuyer

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Finally, the big day has come when you are ready to buy a new home. You are probably already making a shopping list and looking at the design ideas. However, being that this is a serious step, you are certainly worried about doing it right. The most important step you need to take is doing your research. Patience and information will help you do it all right, and with the following six finance tips you will be a proud homeowner in no time.

Examine your financial status

It’s not uncommon for people to get ahead of themselves, especially when they want something very much. However, while the impatience is completely understandable, it can also get you in a lot of financial trouble. Therefore, the first thing to do is checking your savings.

Check if you have enough money in your savings account to take care of up to six of your monthly expenses and then see how much you can put aside for down payment. Next, you should re-evaluate how much you are already spending every month. This will tell you how much you can give for the mortgage payment.

Benefits for the first-time homebuyers

There are always special programmes for the first-time homebuyers. All you have to do is find them. These programs will help you by finding the property you can afford, or be more lenient with the interest rate. There are also credits specifically offered to those looking to buy their first home.



Nevertheless, to know all these things, you have to do a thorough research and even consult someone with financial expertise to explain all the terms and conditions. You should bear in mind all these things when you look for an appropriate mortgage.

Pre-calculate the costs

If you already know which neighborhood you like, then you will probably try to look for your future home there. This will help you to calculate how much costs you can expect for moving, utility bills, fees and taxes. You can find out the monthly expenses for the bills from your realtor or friends who live in the desired neighborhood.

If you have to commute to work, calculate those expenses too. It’s best to try to figure out as much as you can now, and see if you can afford to live in that neighborhood with mortgage payments and other debts incurred from buying the home.

Look at several mortgage loan offers

Never go for the first offer or have only one. Lenders will calculate your credit score and give you an assessment how much you can loan. They will need some additional information from you, like to list your savings, debts and others assets. You should also mention if you qualified for first-time homebuyer programme since there are lenders who work with certain programs.

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Lenders will also tell you how you can improve your credit score. Avoid online calculators since they’re mostly inaccurate, and look for the estimate from professionals and experts on mortgages. One of those expert companies, the BrokerCo in Sunshine Coast, advises choosing a broking service company with long-standing connections in the banking industry and comprehensive knowledge of policies. Only when you find the best deal, you can get a pre-approval of the mortgage loan.

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Find the right realtor

The realtor will be your best friend during the search for your home. Their job is to find the perfect home for you within the budget you have. Don’t contact the realtor before the lender pre-approved your loan since they need to know the exact amount you have for purchase.

Real estate agent will communicate with listing agents, set up showings and help you when negotiating the price. As a buyer, you are not obliged to pay the fee for the realtor’s services since that expense in on the seller.

Homeowners insurance

Before you buy your first home, you must buy the homeowners insurance. This is something the lender will ask you to make sure that you’re a trusted investment. The homeowners insurance will cover the damages and loses to your property.

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It also includes liability insurance for accidents at the property, as well as damages to the contents of your home or your personal possessions. This insurance policy can additionally cover natural disasters, but that all depends on the insurer. But be careful when looking for the right policy since the less expensive one means fewer protections.

To conclude

Whenever you have to make a big financial decision, like buying your first home, make sure that you know all the facts. Being well informed is of the utmost importance when you have to go into debt and you have to make sure that it’s well worth it in the long run.

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