The Full Roadmap To Your First Apartment
The process of buying your first home may involve an amount you have never spent in your life; a kind of cost which makes diligence doubly necessary.
Ideally, you should be observant about every little detail. Let me take you through the different areas which may turn into pitfalls on a later day if left un-negotiated.
Fix an appointment with the loan officer to work out the nuances of preapproved mortgage loans. He will probe into your income, and consolidated (and otherwise) debts. Ask the agent to go through the entire paperwork on your behalf.
Buyer’s agent a must
A buyer may not be best served with a seller’s agent he meets at an open house- what invariably works in the favour of the first home buyer community is a buyer’s agent.
Contingencies and clauses
Your agent will ponder over an opening bid and any clause pertaining to financial contingency, settlement dates or entities like Sunset Clause (largely applicable to off-the plan construction).
Number of fee incurred by first time buyer
You need to prefigure home equity, aspects of mortgage insurance, title insurance and appraisal fee. Additionally, it is wise to work out recording fee, loan-origination fee and costs incurred by you to avail attorneys.
Go through various documentations
In all prudence, you must comprehend the property documents. This must, as a rule, accommodate documents on property taxes (any tax liabilities), specifications of capital gains tax, and utility bills. Learn about the basic energy consumption of the house and find out if it meets criteria of energy efficiency.
Work out if the home runs through easements or has been denied council approval on any ground. Find out if there are any judicial inquiries or tribunal orders pending on the strata scheme (for those opting for community living, just as many First Home Buyers do).
Probe the Body Corporate
For community living, it is advisable to track the income and expenditure sheets of the strata scheme. Body corporate personnel are the right people to connect with in this regard. They will additionally allow you to figure out supplier agreements, agent records, and financial and tax-related levies.
Any possible use of government-facilitated Sinking Fund (funds used to increase borrower liquidity and minimise debts) by the strata scheme should also be assessed. This should include as a prerequisite, costs incurred on maintenance of community areas like pools and gyms.
Buying your first apartment has social connotations
Your first apartment in many ways is also the first time you get acquainted with your real worth and its social equivalent (a home). Choose your home smartly, seeking man-environment fit and in due course of time, your home will begin to shape you.
Could you share the experience of buying your first home?