10 Tips For First Time Home Buyers in Pakistan

January 14, 2022

The time has come for you to buy your first home. You’re probably excited and a little nervous, but don’t fret! We’ve got an ultimate step-by-step guide that will help get everything off the ground quickly with ease of mind knowing what’s coming next in this process. This is the first-time home buyer’s dream—and nightmare! —guidebook.  

Let’s jump right into it: 

1) Know What You Want 

Before you even think about looking at homes, know exactly what you want out of a place. You’ll need to make some tough choices on the type of house, neighborhood, school district, square footage, lot size, etc., but before you do that, you should take some time to figure out what kind of person you are. Think about how you live and where you’d like to be in five years.  

That way, you can narrow down your options to something you really want. For example, if you’re not sure yet what you want to do after college, then maybe a starter home would be best for you. But if you’re ready to start building equity or have decided to become a stay-at-home mom, then a condo might work better. It’s important to pick the right place for yourself because once you sign the dotted line, you won’t be able to change your mind. 

2) Do Your Research 

If you haven’t already done so, now is the time to look up as much information about houses in your target area as possible. Look online, talk to friends who’ve bought homes, read magazines, watch videos, etc. Make sure you’re well informed before you make any decisions. And if you’re just starting out, try looking at homes with a real estate agent; they can give you more details than you could ever find out on your own. 

3) Have The Money To Buy A House 

This may seem obvious, but it bears repeating. If you don’t have enough money saved up to buy a house, then you probably shouldn’t be buying one. While you might be able to borrow from family or friends, there are many risks associated with doing so. In addition to the interest rate being too high, there’s also the chance that they won’t lend you the money. Even worse, if you default on your loan, you could lose your home and all your belongings. 

4) Get Pre-approved For A Loan 

Once you’ve decided on a house and know what you can afford, it’s time to get preapproved for a mortgage. This will ensure you know how much you can borrow before you go to a bank or lender. Once you get approved, you’ll know exactly how much you can spend and what kind of terms you can expect to get. Be sure to ask about points (extra fees you pay when you take out a loan), closing costs (fees paid to the seller and other parties at the end of the sale), and insurance (you’ll have to purchase homeowner’s insurance even if you aren’t planning to move). 

5) Choose Your Mortgage Broker 

Now that you know how much you can borrow, it’s time to choose your mortgage broker. There are two main types of brokers: independent and franchise. Independent brokers represent multiple lenders, while franchise brokers work directly for a single lender. You’ll need to compare their rates, fees, and services to determine which is best for you. You should also ask them for recommendations from people they’ve worked with in the past. If you’re not sure which option to choose, then go with the one that offers the best deal. 

6) Find Out How Much House You Can Afford 

To calculate how much house you can afford, use a free tool called “Your Budget.” Plug in your monthly income, debt repayment, savings goals, and emergency fund, and it will tell you how much house you can afford. Then, factor in your down payment and closing costs, and adjust your budget accordingly. Keep in mind that the lower your down payment, the higher your monthly housing cost. However, the bigger your down payment, the longer it will take to save up enough cash for your down payment. 

7) Decide On Where To Live 

You’ve found a house, negotiated a good price, and are ready to close. Now, you need to decide where to live. Remember, you can’t change your mind later. Some factors to consider include: commute time, public transportation, schools, crime rates, shopping options, parks, safety, etc. 

8) Meet With Your Real Estate Agent 

Before you sign the dotted line, you’ll need to meet with your real estate agent. They’ll walk you through the paperwork and answer any questions you have about the transaction. Don’t forget to bring all your paperwork with you and keep copies for yourself. Also, make sure you’re on the same page with your agent. Agree on a date and time for the closing, and be sure to both attend and provide a copy of your driver’s license. 

9) Get Pre-inspected 

If you’re buying a new home, it’s standard practice to get it pre-inspected by a local inspector. Most inspectors are licensed professionals who inspect the property and report back to you. Ask your agent for a list of recommended inspectors. The inspection will let you know if there are any major problems with the property, and if there are, you can negotiate a price reduction or work out a repair plan. 

10) Sign The Contract 

After the inspection, it’s time to sign the contract. The buyer and seller must both sign the document, which is usually printed on paper. It will contain the final price, terms of the sale, and a description of the property. The contract will also detail what happens after the sale. For example, if you’re selling a house, the contract will explain what happens to your belongings and pets. 

Final Words 

Congratulations! You’ve made it this far. Hopefully, these steps helped you get started. If you’re still having trouble, don’t worry—we’re here to help. Feel free to contact us with any questions or concerns. 

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