Buying a home is a daunting and scary experience especially if it’s your first home. If you are not prepared, chances are that the buying process will overwhelm and wear you out. Realtors will advise you to gather as much knowledge as you can as this will make the process a whole lot easier. In Kenya, the risk of getting conned or swindled is also extremely high so with that comes the need to exercise great caution.
Kenya Homes gives you a comprehensive to-do list to help you buy your first home.
Save
The chances of being a home owner increase very fast if you have mastered the art of saving and living below your means. Successful home owners attest to the fact that they are extremely frugal spenders and big savers. Unless you were born into wealth or have recently won sportpesa, buying your first home will need money and the easiest way to have it is to save it.
Buying your first home requires a down payment of a certain amount depending on the seller. You will need to have instant cash to jump-start the process. Additionally, the closing costs sky-rocket really fast and therefore, your savings will come in handy at this point. For the average Kenyan, it is safe to say that you need more than 1 Million shillings in savings, and that is on the lower side.
Improve Your Credit Score
No bank or mortgage firm will finance the acquisition of your first home without an impressive credit score. This involves your standing with CRB and K.R.A. If you have been blacklisted by the CRB, no financial institution will spare a single minute on you. Any reported fines by K.R.A and other incurred insurance charges of NSSF and NHIF will equally jeopardize your credit score. The best approach if you find yourself cornered is to do your best to have them removed from your credit report.
Another big determinant in your credit score is history of payments. If you have a track record of paying your bills on time, you have no reason to worry. However, if you are frequently late with payments, that should raise a red flag. The good news is that even if you haven’t been consistent with your payments in the past, it’s never too late to start paying off your bills on time to build up some credit equity. If you want to go one step further, pay off your monthly bills earlier than the due date.
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Calculate if you can afford your first home
There are many ways to do this, but a calculator is a good place to start. Buying your first home will need a well calculated budget clearly stipulating the house you can afford to buy. As a buyer,It should never be about the amount the lender will approve. It should be about your monetary strength. As many realtors advise, do not stretch yourself beyond your means. Ask yourself, “After I’ve settled my monthly mortgage payment, will I still afford other basic needs like food and clothing?” Buy a house you can afford without straining.
Decide what features are key in your first home
For some people, all they want is a master ensuite, for others, it could be a pantry and for others, it could be the garden or a nice view.Therefore, Before you buy your first home, have a conversation with your spouse or family members and decide what you cannot live without and what you can compromise on. This is definitely a conversation worth having because unless you have a bottomless pit of money, you will never find a house that meets all your preferences and specifications.