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A “DO AND DON’T” LIST FOR FIRST-TIME BUYERS.

A “DO AND DON’T” LIST FOR FIRST-TIME BUYERS.

For most people, buying a home is the most significant investment of their lives and to help them.

Here we have included some helpful tips in our simple “Do’s & Don’t list to help make the process easier for everyone dreaming of homeownership. In spite of the doubt and confusion clouding both the financial markets and news headlines, 2008 presents many genuine property opportunities – especially for first-time buyers. On average, housing inventory is up, prices have reduced and are now stabilizing and historical data demonstrates that purchasing a home has proven a sound long-term financial investment. However, first-time homebuyers are often understandably anxious when it comes time to making what could be the largest purchase in their life. Coldwell Banker has come up with a simple “do and don’t” list

DO:

DO utilise free online tools to arm you with as much knowledge as possible. For example, the Permanent-TSB, ESRI and Daft reports.

DO take time to access and closely review your credit status. A sound financial track record and solid credit rating can help obtain the loan you will need and at more attractive rates. Checking your records with a fine-tooth comb in advance will also ensure that you catch any errors ahead of time, as well as help you better understand how lenders may perceive you.

If you have had some financial or payment issues in the past here are some suggestions you can do to repair the damage:

-Pay your bills from now on time
Only use the credit facility on your credit card when absolutely necessary,if at all

Keep a separate cheque and savings account

Stay in the same job

DO explore mortgage pre-approval. Getting this early green light will help sellers and their estate agents recognise that you are serious about home ownership – and will give them comfort that you are well-qualified to complete the transaction. It may also help you get the property at a lower price than you would need to offer if you were not “pre-approved”.

DO line up your team of professionals at the beginning of your home search. A team of experienced professionals will be key to making the home buying process simple and seamless. Start by selecting, obtaining advice from and agreeing fees with suitable solicitors, mortgage lenders, surveyors and others who play a role in the process. This will allow you to be informed of the home buying process and budget for all costs involved.

Do anticipate all related and future costs. There are quite a few additional costs involved. These can include-- Home Insurance—Mortgage Protection---Solicitors fees--- Ownership registration --- Snag list –Valuation--- Service charges and Utility bills.

DO anticipate your future needs and buy for lifestyle. Try to anticipate how long you’ll live in your next home and plan for major lifestyle changes when possible. What may make a perfect starter home for a couple might not work as well when you have children? Remember, people move for lifestyle reasons and your first home will likely not be your last.

DO hone in on your housing priorities. Your ideal home may have a long driveway, a football field for a garden and five bedrooms ensuite!. But before you start looking, make sure to separate your “must-haves” from your “nice to haves,” so you know where you can compromise to meet your budget.

Do Get familiar with the area. The state of repair of nearby houses, the neighbours etc.

Do find out about local facilities and services such as transport, fitness centres, local bars and restaurants.

Do find out what facilities are available for children.

If you will be using public transport how close is the bus / Luas stop or train station?

Visit the area at different times from rush hour to weekends and night time.

What direction is the garden facing? Will it have sun in the morning or afternoon?

Is there enough room for entertaining?

Find out from the local authorities about future development plans, that may affect the value of your home and completely change your new home’s environment.

Research the prices in the area by looking at estate agent’s windows, ads in local newspapers and property websites.

DON’T:

DON’T fall in love with the first house or neighborhood you see. That period home with the picturesque view may win your heart at first glance, but don’t fall in love too fast. You need to keep an open mind to make sure you find the right fit for all your needs. At the end of your search, it may turn out that the apartment building that’s closer for your commute is a better bet all-around.

DON’T buy beyond what you can afford. It’s easy to fall into that all-you-can-eat attitude when it comes to your first home purchase. You “want it all” when it comes to size, amenities, location, etc. But remember that your eyes may have a larger appetite than your wallet. Make sure that the deposit, completion costs, and necessary furnishings are truly within your income and savings range before you sign on the dotted line.

DON’T treat your home the way you treat your stock portfolio. It’s unrealistic and unwise to expect your housing investment to appreciate as quickly as you’d hope for your high-risk bonds. Buying for lifestyle, as opposed to trying to turn a quick profit, will help ensure that you are viewing home purchasing and ownership in the right context.

DON’T try to time the market. By the time most buyers sense a major real estate or financial market shift, the tables have typically already turned. Instead of waiting for a slim and unreliable window of time – and potentially missing out on the home that is perfect for you – focus on your own lifestyle and buy when the time is truly right for you.

DON’T jump into an exotic or confusing mortgage. When it comes to downpayments and mortgages, if it sounds too good to be true, it probably is. Be sure to read carefully through every aspect of the loan offer to fully understand your end of the bargain. For instance, what seems like an attractive rate now may balloon exponentially a few years down the road. So arm yourself with information and don’t be afraid to ask questions of your lender, your own mortgage broker or your solicitor. Whilst not exhaustive a useful guide is:

Split Rates:- A split interest rate can set part of a mortgage at a fixed rate and the remainder at a variable rate. With a split interest rate you benefit from the advantages of both fixed and variable rates.

Fixed Rates:- A mortgage loan repayment with a single fixed rate of interest from 1 – 10 year terms.

Variable & Tracker Rates:- These repayment rates increase and decrease. Variable and Tracker rates are in most ways similar – the difference is that the tracker is tied into the European Central Bank (ECB) rate. Although, with variable rates, the lenders could raise their rates in line with general interest rates in the wider economy.

DON’T underestimate the value of a trustworthy estate agent’s on-the-ground expertise. While being a savvy buyer and doing one’s homework will help on the road to homeownership, the assistance or advice of a local expert with years of negotiating experience can be invaluable.
Article Source: Real EstateTips from top notch experts

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