5 Practical Tips to Financing Your First Home
After years of renting, you’re now finally ready to purchase your first property. You decided on a townhouse at Desa Alpha and you can’t wait to get the keys and make it your first home. But before that happens, you still need to finance such a huge purchase. Here are five practical tips to help you do just that:
- Work on your credit score
You already know by now that having a good credit score will help you a lot in securing a loan for a huge purchase like a townhouse or a full house. Your credit score will also determine the interest rate that the bank will give once you apply for a loan. This is why it’s very important to work on your credit score even before you decide to buy a property to make sure that you don’t get into any problems when it’s time to apply for financing.
- Know what you already have
Chances are, you already started saving up for a house a few years back and you might also have some extra savings in the bank. Know what you have on hand first, so you can determine how much more you need to raise to complete your down payment. Remember that the more money you put in, the easier it is to get approved for a housing loan and enjoy lower interest rates. You can even ask from family and friends who will be willing to give you a loan without any interest. This way, you can cut down your loan repayments, so you won’t have a hard time later on.
- Check your loan options
The good thing about buying a home these days is that you already have a lot of options for financing. But having that doesn’t necessarily mean jumping into the first offer you see. In fact, it’s very important to look at each option carefully, compare them and ask advice from professionals before you make that final decision.
- Explore the market
Properties can differ in prices based on the season, the location and a lot of other factors. This is why it’s very important to explore the market and know what your property options are before putting a down payment on anything. Try to come up with a list of your non-negotiables in a property, so it’s easier for you to narrow down these options and make the right decision.
- Prepare to make a deal
Once you have a property in mind, it’s time to put in an offer and get a deal done. Most sellers would love to choose buyers who have bigger down payments. But they also love buyers who are inquisitive but not rude. Don’t hesitate to seek professional help if you’re not confident about your negotiation skills, so you can do everything properly.
After all that hard work and you already have the keys to your home, you can start decorating your space to really make it your own.
