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Buying Your First Home?  Details You Need To Know

Are you thinking about buying your first home? Buying a home can be an exciting and stressful event, especially for a young couple, ready to move on in their lives, and really begin to establish the foundations of their future. There are so many things to consider, that it may be easy to feel a little overwhelmed at first. However, in order to help relieve some of the stress that comes with simple ignorance, we have organized a short list of things to know.

Is this the right decision?

Before you move forward in the decision to purchase your own property, we might ask, "Are you ready for the commitment involved in buying your first home?" Although it is an important step to take in your life, it is important also to understand the terms and consequences of doing so. This is possibly the largest transaction (and investment) you will ever make. Make sure you have listed all of your options, with the pros and cons so that once you make a decision, you can move forward with certainty, knowing you will be financially able to comfortably deal with the purchase.

Is it affordable?

It is likely that, in order to purchase your home, you will need to be able to place about a 95% deposit on the purchase of the property. The size of this deposit is much larger than it used to be, as the market and economic situations have changed drastically over the years. But this requirement means that you need to have a good amount of money saved up to be able to hurdle that number.

Is a mortgage a possible option?

Almost all mortgage lenders base their decision to lend you money on your credit history and income. If your credit history is positive, it is likely that you will qualify for a loan. However, you will surely want to do your research on the requirements and implications of a mortgage so that you will be prepared to accept the terms offered to you when the time comes. There are many lending institutions and banks out there that offer competitive interest rates. Finding the best option may be up to you, and depend on your willingness to shop, compare, and negotiate price.

Home Insurance

One of the most important things to consider when you are looking into the purchase of property is insurance. Don't you want to protect the investment you are making in buying your first home? In order to cover the building and its contents, you will need to shop around for an insurance plan that will suit your needs.

It is questions like the ones above that will help you as you look into making that wonderful first step into real life by buying your very own home. Do your research, and become familiar with the terms and process, and look forward to the rest of your life.