What are the Do’s and Don'ts of Buying a Property?

Buying a home is one of the largest financial decisions you’ll make in your lifetime. Once you commit to buying, you must know all the ins and outs. Buying a property is stressful, but it doesn’t have to be if you know what you're doing. Here are some do's and don'ts of buying a property so you can get into your first home sooner rather than later!

What to do when you’re buying your first property

When buying your first property, there’s a lot to take in. While you may be excited, you may also be a little overwhelmed. Here are a few tips to help you get a leg up when buying your first property. 

• Set realistic goals - You want to buy the perfect property, don’t buy the dream. Set realistic goals for yourself. What are your financial goals for the property? What are your housing needs? 
• Research - Get as much information as you can. Research the surrounding area. Do you want to buy in a city or a rural area? What’s the real estate market like? Where are most first-time buyers getting financing? 
• Get pre-approved - If you plan to get a loan, get pre-approved. Pre-approval will tell you what your bank says you can borrow and will let you know if they approve you for a higher loan amount. 
• Get organised - Get yourself organised so you can easily take notes while looking at properties. 
• Attend open houses - Real estate is a very competitive market. You’ll have a better chance of buying a property if you attend open houses. 
• Take the time to learn the area - This is your home. Where will you live? Why does the area have the reputation that it does?

Don’t buy a property before you learn all you can - Half knowledge is dangerous!

If you’re looking to buy your first property, don’t buy a property before you learn all you can. Learn about government subsidies, tax benefits, the builder’s track record and State laws before leaning into buying a property. Even if you may feel like you know enough, there are always new things that you will learn once you start looking at properties. One of the biggest mistakes first-time homebuyers make is buying a property before they know what they’re doing. 

Do perform a full FS-5 and FS-3.

It’s important that you perform a full financial statement review. A full financial statement review will let you know what you’ll need to buy a property. It will also let you know what you should pay for the property. Also, don’t buy a house with a low credit score. A low credit score may not grant you the financial aid you need to buy a property. If you have a low credit score, wait till it reaches at least 750 before applying for a loan.

Don’t pay up before you receive an official offer.

When buying your first property, you must ensure you receive an official offer. An official offer is an offer that the seller has accepted. This may prevent you from falling in for scams prematurely. 

Do have a financial commitment to the purchase.

When you’re looking to buy your first property, you need to make a financial commitment. A financial commitment means that you’ve got money saved up to buy that property. You don’t want to buy a property and must pay for it immediately. If you don’t have the money to buy the property, you will have to wait until you have the money. 

Do ask for professional advice.

When you’re buying your first property, you need to make sure that you get professional advice from a financial advisor. A professional advisor can help ensure you’ve saved up the money to buy that property. They can also help you to find a good mortgage lender.

Buying a home is a big project, especially if you’re doing it for the first time. It isn’t just about investing capital to get returns; it’s about spending money on a space you’ll call home for years. So, if it boils down to the most basic do and don’t of buying a home, then it is – do your research and don’t lose hope.