Buying your first home can seem stressful and overwhelming because it’s unfamiliar. However, like everything in life, buying a home for the first time is much easier when you have someone you trust to help you through the process.
❝Are you buying your first home and want to be on the safe side? We give you the best tips to achieve this ❞
In this article, we will share the best tips we have collected over the years for buying your first home. Take note of what we will tell you, and remember that we are available to help you buy a house in Madrid and its surroundings.
Tips for buying your first home
There are several tips and steps you should follow to make your first home purchase a success. Below, we give you some of the best advice on the subject.
1. Analyze your real needs
Before you start looking for a home on sites like Idealista, it is important that you have a list of priorities and needs that must be met.
Consider the number of rooms you really need, the number of bathrooms or toilets, and take all these points into account when you start looking.
2. Set your budget
As for the price of the house, it is also important to set your budget before searching.
To make a smart purchase, keep the following in mind:
Instead of basing your decision on the highest amount you can afford to spend, consider your budget as well as your actual needs.
If you have a budget of $500,000 but the house that meets your needs only costs $150,000, it would not be wise to look for a larger or more luxurious house just because your budget is higher than the price of the house.
3. Save enough for the down payment and mortgage expenses
Another point you should keep in mind when buying your first home is that you need to have money saved.
Although we have already mentioned in this blog that you can buy a house without savings, the truth is that it will be much easier if you have money saved.
This way, you can easily cover the down payment and mortgage expenses.
Keep in mind that you will also need money to furnish the house if you do not buy a furnished home and to connect the utilities.
4. Keep in mind the 35% rule
If you are applying for a mortgage to buy your first home, you need to apply the 35% rule so that your finances are not affected.
This rule states that the amount you pay on your mortgage must not exceed 35% of your family’s monthly income.
Therefore, if you earn $2,000 as a family unit, the mortgage payment should not exceed $700 per month. In fact, the optimal amount to enjoy good solvency is for the mortgage payment to be below this since 35% is the limit.
5. Choose a house with an eye to the future
Buying a house for the first time is something we’re sure you’re really excited about. But, in addition to falling in love with a home and going for it, it’s important that you buy it with the future in mind.
If the house will only be for you and your partner and you don’t plan on having children, one bedroom may be enough.
However, if you are planning to expand your family or have guests, you should think not only about the present, but also about the future.
This way, you won’t buy a house that will be too small for you in a few years.
Other tips for buying a home for the first time
In addition to the advice we have given you, there are other aspects that you should take into account when buying your first home:
- It is important that you know the taxes you will have to pay if you buy a new home or a second-hand home.
- In addition to falling in love with a house, it will be useful to make a list of the pros and cons of the homes you visit to assess which is the best option.
- If you are going to apply for a mortgage, don’t limit yourself to the one offered by your own lender. Shop around and compare to find the best deal.
- Having the help of a real estate agency is essential to guide you through the management of all the documents that must be requested or presented when purchasing a home.
We hope that these tips and tricks for buying your first home have helped you better understand this process and help you lose your fear.
