How to Reduce Stress When Buying Your First Home

Buying a home is undoubtedly an emotional experience. It’s a long-term commitment, and there is absolutely no way to avoid taking it personally. It is so much more than bricks and mortar – it’s a place where your future memories are to be made and you want it to be perfect.

Exciting? Yes. Stressful? Definitely. However, in order to make the right decision you must keep a cool head, so here are a few tips to reduce your frustration while facing such a major change.

Be Sure of What You Want

This would be a good time to separate dreams from reality. Even though you should have a vision of what kind of home you’d like to own, you have to have realistic expectations you’ll stick to. Otherwise, changing your mind will cause you to spend endless hours looking for something that will never match your needs. A real estate agent is only able to help you if you can provide a little direction and are specific about the requirements. There are certain guidelines you can follow in order to better define what would be most suitable for you and your family. Consider the number of bedrooms and bathrooms, whether you’d like a one-level or a multi-level home, the size and age of the residence, location and neighborhood. Do some research and try to pinpoint the direction you’re heading towards.

Compare Loan Deals

Taking out a loan requires some shopping around. Making an informed decision is vital for that piece of mind you get knowing you’ve done everything in your power to get the best deal. Know the lingo and don’t hesitate to contact a trustworthy professional or institution. Nowadays, you can do a lot of the legwork online and a search for the best interest rates can be achieved with only a few keystrokes. Mortgage brokers and lending entities often have a pool of different banks from which they can offer the most competitive interest rates available. Thanks to the transparent nature of certain online brokers like Lendi, we are able to get unique insights into this process. For example, ING Direct had the lowest interest rate of 3.59% (with an average term of 25 years). Additionally, the same bank was also considered by over 70.000 people, which shows that their conditions have been favorable for a number of loan takers. There are numerous options available, so do your research and ask around so you can make a choice that will be perfectly tailored to your financial situation.

Loan Pre-approval

Imagine finding the ideal property only to find out you are ineligible for the financing. This alone is a major cause of frustration since you’ve just found out your dream home is out of reach. In order to avoid this, get pre-approved for a loan. Try to think of it as a dress rehearsal for the actual loan from the lender. It is in no way obligatory, yet it will help you better understand how much you can actually borrow. It is a free service, and the offer is usually valid for 3 to 6 months. This is definitely a stress-relieving convenience, since you’ll know exactly how much you can afford, and you’ll feel more at ease while attending auctions. Don’t forget to pay all your bills on time and raise your credit score which will also help you qualify for the best possible interest rate.

The Importance of Flexibility

Unless you’re building your own home from the ground up, you should be open to suggestions when it comes to your future abode. Thinking you have all the details figured out means that you’ll probably never find a match in the real world. Flexibility is the key, but you have to find the right balance. You shouldn’t compromise when it comes to major requirements, but there have to be things you are willing to reconsider. It is important to know what your priorities are and what you can actually live without. Make a list, decide what’s important and if you manage to check most of the items off it, it’s already a great success.

Real Estate Agents Are on Your Side

Some things are better left to the professionals. Your real estate agent is familiar with the process you’re going through and is definitely the person to give you sound advice, which will inevitably save you money, labor and stress. It may happen, for instance, that the agent estimates that certain additions can be made to your offer and work in your favor, such as repairs conducted by the seller prior to the purchase. They are more than familiar with the best strategic approach that will result in you getting your dream home. They’ll know the exact amount of money you should offer in order to get the right response, so don’t fight them on decisions that will eventually get you the best deal.  A good real estate agent has your best interests in mind.

We hope that the above summation of the various aspects of the home loan process has made it a little easier to understand all the potential pitfalls you might face (and how to deal with them). Buying a home is a big deal, but it’s important to remember not to let the associated stress get to you. Approaching each possible hurdle with a cool head on your shoulders will ensure that your homeownership dream becomes a reality.