Buying your first home is a huge financial investment by itself, leave alone buying and then spending more on renovations. There are so many considerations first-time home buyers have to take into account before they sign on the dotted line. Among these are the location, security, facilities, and financing options. Below are seven tips for buying and financing your first home.
1. Take Advantage of First-Time Homebuyers Facilities
While it’s quite a challenge buying a house for the first time, there are advantages that accompany this big step in your life. Incentives and programs designed with first-time homebuyers in mind exist. What this means is that you have more options at your disposal that would make buying and remodeling a house cheaper. The key is to look for government programs designed to help people who have never bought a house purchase one.
2. Avoid a Fixer-Upper if you can
It is tempting for a first-time homebuyer to go for fix-upper homes because they are cheap. While this may be a good deal, if you don’t have experience in remodeling homes, or perhaps you hardly have time outside your working hours, this may not be the best deal for you.
However, if you have some money for repairs set aside, you actually enjoy the remodeling process, and you have the time, buying a fixer-upper home could be an exciting move. The only caveat here is that you must understand what needs to be fixed before you buy the home.
3. Get a Home Renovation Plan
To effectively remodel your new home, plan everything. Don’t leave anything to chance as going into renovations without a plan puts you at risk of overrunning the budget. Start by categorizing the remodeling plans into subcategories and renovating one space after another.
As you plan, focus on the smaller and bigger parts of the project. Have a renovation plan for every area. The key is to remodel one part at a time without losing sight of the overall goal of the project.
4. Draw a Budget
One of the most critical components of your renovation project is the budget. Without one, you would soon run out of money. Decide early on how much you can afford to spend on remodeling your new house and discipline yourself to stick to your budget. For unforeseen expenses, make provision for contingencies (10% is recommended).
5. Be Aware of Major Renovations
Before you buy your new home, make sure there are no major repairs involved. For instance, if you have to replace an entire roof, this will cost you a pretty penny. If you have counted the cost and you think it’s still worth it, consider using the wholly recyclable stone-coated steel roofing. The beauty of this material is that it weighs just 1.4 lbs per square foot. It also comes with a Class 4 hail impact resistance and a Class A fire rating.
6. Home Financing for Disadvantaged Groups
It is only fair to give one-time, low-level convicts a second chance. This is mainly because DWIs are not criminal offenses per se, and sealing these convictions will give the ex-convicts a chance to apply for financing at institutions that would typically give them a cold shoulder upon access to their criminal records. If you fall into this category, start researching disadvantaged group deals in your area to see what you can find.
7. Perform a Security Review
Consider the security of the area you intend to purchase a home in. Thorough research will leave you well-informed. For instance, an area where only 13% of burglaries are reported should act as a red flag, denoting a highly insecure neighborhood. If you must buy a home in such an area, consider increasing your budget on smart security installations.
Consider the Bigger Picture
Buying and remodeling your first house can be an exciting venture if you do it right. However, it can also be a nightmare if you fail to factor in all the areas that need renovating. Before you sign on the dotted line, make sure you understand exactly how much you will need for the remodeling.
You should also draft a renovation plan, which should include a budget that must be strictly followed. At the end of the day, you might be better off avoiding a house that requires remodeling. However, if you are a DIY fan, remodeling a house could be both exciting and adventurous. Take the plunge, but proceed with caution.