Buying a house is not at all that fast and easy. It is a onerous endeavor and it needs careful planning and thorough analysis of ones financial capacity. On the other hand, it is really not that tedious as many think it is. As long as you do your research and you are financially ready, you will have a smooth buying experience on your first home. This article will give you Tips on How to Buy Your First Home.
Tips on How to Buy Your First Home
When Buying a home, you must decide first what type of house you want for yourself. Do you want to live in a condo? Or do you want a house and lot? How about a townhouse? These are the things that you need to consider first. Then, after careful scrutiny of your personal finance capacity, you have also to decide what category of housing do you like, is it low cost, middle cost or high-end type of house?
Save for the Downpayment
Buying your first home (or whatever real property) is a onerous endeavor. The down-payment of the house usually ranges from 20-50 percent of the total selling price. You have to be prepared for your house down payment. However, there are developers here in the Philippines that offer easy payment terms for the equity with a term that ranges from 3-5 years payment period for pre-selling projects. But for projects that are already buildable, down payment term can only range from 6-24 months. So figure out how you you are going to pay for the down payment of your first home.
Research for projects and house models of existing projects in your targeted area
Home buying is easier nowadays with the advent of the Internet. You can do research on the different housing projects in the area that you want to settle in.
Be served by a Licensed real estate broker or agent
Licensed brokers and agents are there to make your home buying process easier and faster. They can answer your questions regarding the projects that you are interested and they can facilitate the home buying process in a way that will make your home buying a great learning and enjoyable experience.
Consider Buying a House from Reputable Developers
Buying a house involves a big amount of money. It is better to look into the track record of the developer of the housing project that you are eyeing to purchase. This will save you headache in the future.
Decide on the financing institution and scheme of your house Purchase
If you are able to pay your house purchase with a spot cash, great! However, if you intend to get a house via loan, it is better to find out first if you are qualified for a loan. You may use Pag-ibig Financing, Bank Financing and In-house financing if the developers offer it. The advantage of Pag-ibig financing is it has a long term, with a maximum of 30 years. Long-term payment period means easier monthly amortizations on your home loan. Pag-ibig interest rate is also low – 4.5% for affordable housing and 5.5 to 6.5 for low cost housing. You may also consider applying for a home loan trough banks. Nowadays, banks have very competitive interest rates, thanks to the booming real estate industry in the Philippines. You may also avail of in-house financing offered by some developers.
There you have it folks, happy house hunting!
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The internet really can be your best friend when trying to find good houses that you could potentially move into. As the article points out, it can be quite helpful for looking at different housing projects that are in development. Even if you aren’t looking to buy a brand new house, you can still search most real estate sites to find houses in your area that fit your budget.
I like that you mentioned that it may be best to buy a home after looking into the track record of the developers of that house. What would be the best way to go about doing that? I’m curious to know since my wife and I have been thinking of moving into a new house this year, but we want to make sure we move into one that is built properly by a reliable development company.
Thanks for the tips for buying a home. My wife and I are first time home buyers, and we want to make sure we get all the information before we start. I like that you mentioned to start saving early for a down payment. I didn’t realize they could be 20-50% of the price of the home. I will have to start saving for that ASAP.
You wrote that when you begin your search for a home, consider what type and size of home you want, as this will determine a lot of how you search. I need a home that can fit our ever growing family, and has room for them to play. I’ll have to find a real estate agent that has experience putting new families into homes, as the have problem seen our situation multiple times before and know what homes work best.
Hello Rachel, thanks for dropping by. Yes, get the services of real estate agent as they can help you in your home buying process. Kudos!
Thanks for the great tips for buying a home. MY wife and I want to get out of our apartment and into a home, but we worry about the money. Hiring a real estate agent does sound like it would make it a lot easier. Would we save money in the long run?
Hi Ridley, thanks for the comment. Running the numbers is the best way to do when considering of moving especially if money is a big factor to consider.
My husband and I are thinking about buying our first home in the near future. I appreciate that you said to start saving or a down payment, which should be 20%-50% of the total selling price of the home. I always knew you should put a good amount down, but it’s helpful to know a range of what is recommended.
Thanks for pointing out that the down payment on a home usually ranges from 20 – 50 percent of the total selling price. I imagine that it would be much easier to get financed for a your home buy if you had a larger down payment saved up. My niece is thinking of buying a house soon, so I’ll be sure to check with her about how much she has for her down payment.
The article brings up a great point about how important it is to work with a licensed real estate broker. After all, when you’re buying a home for the first time, you want to have someone with experience there to help you out. A real estate broker has both experience in buying and selling homes, meaning that they can help you with any point in the home buying process.
Yes. Licensed Real Estate professionals are a big help in buying your first home or anything related to real estate. Thanks for dropping by Callum!