You need to prepare yourself financially and emotionally before buying a house. It is the largest outpour of money you will have in your life. Below are some things to consider before venturing out to buy a house:
1. Assess your lifestyle: Analyse whether you are financially able to buy your own house. Can you afford the down payment as well as the subsequent payments that will be required on a regular basis like maintenance charges and taxes and potentially a mortgage payment?
2. Keep your financial statements ready. Ask your lender questions if you have doubts and especially ask about government-backed loans.
3. Always plan for the future. Real estate is a long-term purchase. What will your life be like in 5 years? Will anyone be moving in with you, maybe a child or a parent? What will the area you are investing look like in 5 years? Is it improving?
4. Make a list of what you’d like and must have in a house. You don’t need everything you want. Keep your expectations realistic.
5. Where do you want to live? Do you need to be close your job, or is being close to a transportation hub good enough? Try to scout a home in a location with close proximities to basic facilities.
6. Understand the real estate market. There are many blogs, case studies etc. to read to get basic knowledge about buying your home.
7. Do your homework. Get the rate of houses in the area you wish to live in.
8. Analyse the percentage of house owners vs rental houses.
9. Order a home inspection before buying the house. The newer the structure, the less problems you should have, but that is not always the case.
10. Make an offer on comparative analysis. Buy smart and not with emotions.