How to Buy Your First Home

A home is a special place for all. It is the place where a person can be himself without any restrictions. Furthermore, if you are a first time home buyer then you have to be extra careful about all the aspects that are involved in home buying. People have many questions regarding how to buy their first home. Let me be of some assistance to those who are bothered with the question of how to buy your first home.

Here is a step-wise procedure that can be followed while buying a first home. I call it the top-to-bottom procedure since we will be discussing the issue from the top i.e. from the most important aspect to the bottom i.e. not least but comparatively less important point.

Issue 1: The most important and personal issue of all is, your budget. How much are you willing or how much can you afford to spend on buying a home. The rest of the issues largely depend on this one. Here is where you have to plan about the payment scheme that you can undertake for the purchase. If taking a home loan, what is the limit that you can get on your current salary and what are the interest rates, payback schemes and home insurance schemes. You have to visit some banks before choosing the one that is right for you. However, I would suggest you to do a rough inquiry and do not make any paper deals before you deal through with all the issues.

Note: Issue 2 and 3 may be considered together since, some may find Issue 2 more important than Issue 3 or vice-versa.

Issue 2: Now, depending on Issue 1, you decide what type of home you prefer. Since this is your first home, you have to make the selection by keeping in mind the number of members in the family. Whether you want an apartment, a cottage, a bungalow, a row-house, a farm house, a villa, a micro-apartment, etc. The number of rooms are required depending on the people staying in the house.

Issue 3: This issue covers the point regarding the location of the house from the center of the city, the marketplace, your working place, your spouse's working place as well as from the kids' school. What are the transport facilities and other social facilities such as schools, hospitals, etc. that are available in the area.

Issue 4: Now, you can think about the surrounding aspects like locality of the house. Can you deal with a busy locality or do you need a very quiet environment? Remember, Issue 1 will vary a little depending on your this decision.

Issue 5: If any of the houses that you have seen interests you, try not to disclose eagerness before making a few background checks on the builder and the land where the house is constructed. You can go to the local government records keeping center and checkout the documents regarding the deeds of the land. If you have selected an apartment and it was previously owned by someone else, inquire from neighbors or any other sources about the previous inhabitants. You may also check one of the adjoining/lower/upper apartments that are identical to the one you liked to get an idea about its actual looks and space. If the house is under construction, you can ask the builder what type of home construction method he intends to employ, materials used, the contractor supplying goods, etc. If you are constructing your own house through a contractor, remember to keep a close eye on the raw materials and their bills. If it is a co-operative housing, inquire about the society policies and other facilities like water, gas, electricity, health clubs, common facilities, maintenance tax, parking, security, etc.

Issue 6: After you have covered the outside of the house, get to the interior amenities. Check the type of balconies, flooring, paint, door/window frames, etc., that are being used.

Issue 7: Based on issue 5 and 6, once you have selected the house, do a little research on the market value of the place from real estate agents and brokers. If the price demanded for the house is not appropriate according to you, find out the reasons for it from the builder or the person selling the house. Negotiate on logical terms and see if any alterations can be done about the financial aspects.

Issue 8: Now, negotiate the payment scheme with the house owner as well as the bank (in case you are getting a loan). Depending on the above issues, you must decide your payment scheme ratio i.e. cash : loan. If you find the loan schemes to be beneficial, you can bend the ratio towards the loan side more. Also, discuss the possession period and make all the terms and conditions legal by getting every single deal on the appropriate government stamp paper. Consult a real estate attorney for this purpose, if you have to.

If you are hiring an interior decorator or landscape architect for remodeling of the house, convey your requirements clearly to him and keep the whole business documented. From the looks on your faces right now I can understand that all the above issues sound scary and lengthy, but after all, its your own house that we are talking about, that too your OWN FIRST house. So, don't you think it's worth the trouble to know how to buy your first home and follow the guidelines carefully?