So, are you house hunting for your first house?
Great!
But, wait. Do you know about the first time homeowner checklist?
If not, then this blog is a perfect guide for you. This piece brings a first-time homeowner checklist that will help you find your dream home in no time.
To know more about the things you need to know before buying your new house, keep on reading.
Gauge the time:
Time is money, and every investment decision should be time-bound. Do not purchase a house if you are already in debt or face any other financial constraint. These things will weaken your financial position and you will be left with more financial pressure.
Before investing your hard-earned money in any property, make sure you do your homework. Consider your finances and ask yourself – can you afford this house at the current moment? If not, what are your options? Can you afford a loan at the moment?
Apart from time, some of the other things you need to consider include the market conditions and the latest real estate trends in the region. Also, make sure know about the locality and its rules and regulations.
Do not spend your money on projects that are not approved by the local development authorities. If you think you cannot afford a house at the moment, it is okay. Try saving up and investing in small business opportunities in Pakistan that can turn into solid revenue streams for you. It is okay to start small and pave your path from there.
Deposit:
When you purchase a house in Pakistan, you have to save up for a deposit. A deposit is an amount the buyer has to pay the seller to conceal the deal. The deposit percentage varies from region to region.
Before purchasing a house, ask yourself – how much do I need to save for the initial deposit? Usually, a deposit consists of 5% of the property value. But, we suggest you save as much as possible because the higher the deposit amount, the lower the monthly instalments and interest rates on loans.
The total cost of buying a house:
There are many costs associated with purchasing a home in Pakistan.
First of all, you need to consider the mortgage arrangement costs. Mortgage fees are fees charged by a lender for closing a home loan.
These fees must be disclosed on the Good Faith Estimate and will appear on the loan closing statement. Before closing the mortgage, make sure you read about the mortgage and how it works. Explore its different types and try to understand how it is calculated.
Secondly, one has to incur certain home insurance costs while buying a house in Pakistan. Sometimes home insurance is crucial because financial institutions might not give you a mortgage without a proper home insurance plan.
One crucial aspect that must be considered while getting home insurance in Pakistan is that it is a recurring cost, and one must pay it every month. Plus, it can be affected by interest rate rises.
Some of the other costs that one may incur are upfront costs, surveyor fees, legal fees and additional ongoing costs such as council tax, maintenance fees and utility bills.
House hunting:
There are certain things that you need to keep in mind while house hunting. There are many mediums that you can use to get the perfect house. Apart from mainstream real estate offices and agents, you can also use real estate portals to explore endless real estate options in your area.
When you view properties, keep all the essential details about the property in mind. Do not stick to straightforward questions such as – how long it’s been on the market. Instead of such questions, go deeper and try to grasp as much information as you can about the property. For example, before making your final decision, you need to consider the neighbors, infrastructure of the house, amenities, facilities, parking, etc.
When you plan a visit to the desired property, make sure you observe the property thoroughly.
Try to visit the property twice, especially at different times of the day. Some of the amenities you need to consider while purchasing a house include – local shops, shopping centers, restaurants, leisure facilities, good schools, colleges and hospitals.
Make an offer:
Making a reasonable offer is an art. It is not only time consuming, but it also requires a specific skill set and negotiation power. Before making your final decision regarding the house, make sure you research what similar properties are within the area. This practice will help as a guide and assist you in making a sound and well-informed decision.
Also, make use of the power of negotiation. Use your negotiation to bring down the asking price. However, before making the final decision, make sure to run some last checks on the property to make sure the property is intact and does not come with any significant faults and issues.
Make the final contract:
If the offer gets finalized and there is nothing wrong with the property, it is time for you to make the final contract. It is crucial to put everything on paper. This will help you secure your investment and keep you away from unwanted lawsuits and legal issues.
In short, the final contract is the phase where the sale becomes legally binding.
Completion:
After all the paperwork and requirements of moving in, it is time to receive the keys to your first home. Usually, competition time varies from region to region, and localities play their role, but usually, the completion time is completed within one month. However, the completion may also take some time, as there are cases in which a house was delivered to the buyer at the end of three to four months.
As a new home buyer, you need to save money as well, for that, try to adopt sustainable and environmentally friendly solutions such as switching off energy suppliers, buying second-hand furniture, organizing and decluttering your personal belongings, taking meter readings when you move in, etc.
So, these are some things that first home buyers must keep in mind while purchasing their first home. These tips and tricks will not only help you save your money but will also make the house-hunting process smooth and easy to handle.
If you have any other questions and queries, let us know, and we will get back to you as soon as possible.
Until then,
Happy house hunting!
