Four Ways to Set Yourself Up for Success When Buying Your First Home

As one of the largest financial decisions in a person’s life, buying a home requires discretion, sensibility and budgeting. The following tips will keep you on the right path as you look to purchase your first place.

Have your cash ready/ mortgage good to go

In Nigerian real estate cash is king. Once you’ve got the cash, you’ve got the power to purchase any property your heart desires. The goal is to ensure that you’ve accumulated enough cash to purchase the property, pay all fees and make needed modifications and improvements as necessary. However, given the emergence of the mortgage industry, there’s now an alternative for cash strapped buyers who do not have the complete funds to make an outright purchase.  It’s best to work with a mortgage bank and mortgage broker you like and trust and try and obtain any concessions on rates and tenor.

Consider all costs

The cost of a home is just the start, and smart buyers tighten their belts before buying to meet the monthly and yearly financial demands of home ownership. Expenses such as utilities and possibly homeowner association dues need to be covered. You’ll also need cash on hand for the upkeep and repair costs that come with any home. The average homeowner spends a decent amount of money on property maintenance each year. Expect to pay for repairs or maintenance even within the first year of owning your home.

Be flexible in your search

Home-buyers who distinguish between wants and needs make the most sensible decisions. A list of must-haves should include items that affect your quality of life, such as a home’s location, its price, number of bedrooms, security, light and square meter. You should be prepared to concede nonessential items, such as views and extra rooms, if you find a house meets your must-haves and is within your budget. Being flexible also involves adjusting your criteria as the home search progresses. For example, your budget may require looking at a town house rather than a detached home, or buying a fixer-upper in order to live in a better neighborhood.

Keep your cool

Don’t get overly excited in your search, especially in markets where homes are selling quickly. A bit of self-restraint prevents you from overspending or choosing a home that doesn’t fully fit your needs. Be prepared to walk away if a home inspection reveals more defects in a home than you’re able to deal with. Also, keep calm if you find yourself in a bidding war. Your agent can help you make the most competitive offer, and if it doesn’t get accepted, then your agent can help you find the next great option. Finding the right home that fits your lifestyle and budget can take weeks or months. By starting early and being patient, you’ll avoid the sense of urgency that often drives home-buyers to make hasty decisions.