Things to Consider when Buying a House for the First Time

Buying a house, perhaps after years of renting, is a big step.    Suddenly, you no longer have your get out of jail free card (your expired lease); with this one, you’re in for the long haul. While this makes plenty of people nervous, it’s really a cause for celebration - you’ll own your own home! No more renting! You can do whatever you want!
I know, we’re as excited as you are. However, before you plunge in, there are some essentials that you need to consider and take care of. In this guide, we’ll run through some of the details you need to know before you buy your dream home, be it in Canada, the UK, or the US.

Know Your Budget - and Stick to it!


Be sensible when you’re buying your home: you’ll be living with the consequences of your actions for some time to come. All going well, these consequences won’t be bad. Before you even start looking at homes, make sure you know the absolute maximum amount of money you can afford to spend on a home. Write the number down, underline it, and burn it into your memory - you must not, under any circumstances, go above that number, regardless of how great the house. It’s your maximum number for a reason. Some people prefer to have two numbers - one that is the upper limit they would like to spend, and one that they’re willing to spend if they find their absolute dream home. This arrangement may also work for you. Don’t just factor in the monthly mortgage cost into your budget; also factor in any routine expenses you think you will need in your new home (such as cable/internet/phone line etc) to create a monthly budget. If the number makes you panic, rethink.

Finding the Right House

 Finding the house that is right for you depends on a variety of  factors, such as your income, location, and the number of people  who will eventually be living there. Anyone one of these factors can  change your circumstances, so make sure you have a clear idea  about each.
 A person on a $50,000 a year wage will have better luck finding a  place if they live in Manitoba rather than Vancouver, for instance,  while you'll gt much more space for your money in the North of  England (UK) than the coveted South-East. Of course, you can’t be  picky. Remember: the perfect house doesn’t exist. In many ways,  you’re investing in the potential of the house and your ability to make it a warm home that’s right for you, so don’t be put off by minor details that can altered later. Be sensible, but also, don’t ignore your intuition - if a place feels right but doesn’t meet all your requirements, give it another look and see if there’s somewhere you can compromise.

Hidden Costs

You know how much your house is; you know how much your mortgage is; and you know how much you earn. Sounds like a simple calculation to determine how much you’ll need in order to afford your home, right? Wrong. Buying a house brings many hidden costs that you’ll need to be aware of. You’ll need home insurance to adequately cover any thrills or spills in your home, money to cover the property tax (which, depending on where you live, could be as low $3.68 per $1000 of home, or as high as $13.69; this matters less in th UK, where it generally goes off the cost of your property), closing fees, utility bills, money for repairing and replacing things that break, etc. It’s quite a list in the end, so be ready - don’t put yourself in a position where you’re struggling to pay your mortgage as you won’t have the necessary funds for other things. Remember: you always upgrade your home, so it’s worst putting yourself through a struggle just to get your dream home immediately.

Don’t Go it Alone

If it’s your first time buying a house, don’t go full throttle into it by yourself. Chances are, there is a wealth of knowledge trapped inside your relatives/friends/co-workers who can offer advice on the whole process. If you don’t know anything about homes, take somebody with you who does - they can sometimes save you from an impending disaster, or give you the words of encouragement you need to go through with it. Be sensible, and it’ll go smoothly - and then you’ll be a homeowner!


This Article is courtesy of
Gemma Hewson  

Thank You, Gemma,  Ken Calcutt

References
https://www.cmhc-schl.gc.ca/en/co/buho/hostst/
http://www.compareni.com/insurance/home.htm
http://canada.angloinfo.com/money/general-taxes/property-tax/
http://www.hgtv.ca/realestate/article/10-tips-to-consider-before-buying-a-home/
http://www.rew.ca/news/the-hidden-costs-of-buying-a-home-1.1342002
http://www.mymoneycoach.ca/budgeting/what-is-a-budget-planning-forecasting
http://www.mymoneycoach.ca/blog/tips-for-buying-a-house-for-first-time-home-buyers.html

All images Courtesy off  FreeDigitalPhotos.net
1 and 2 Image by fantasista 
3 Image by Vichaya Kiatying-Angsulee 
4 Image by ddpavumba