Your financial state will determine whether you are certified to buy a home immediately or need to start saving to make the purchase possible. To start saving, minimize your daily expenses and take the necessary steps to handle your income in the best way possible.  

Since home loan lenders need to ensure you are capable enough to pay back the mortgage, they will want to know how well you handle your existing debt. It is better to clear off the debt or keep them in control before you take a loan. 

Be mindful of the present living expenses while purchasing your own home. Set aside for mortgage payments and save some for a down payment too.

Decide Your Dream Home According To Your Budget

Depending on your budget and requirement, you can do online research to decide the type of property that fits your goals. Have a good handle on the neighbourhood, including location, distance to stores, business and school district, parking, and property taxes.

You can look at the recent home sales in that area with the help of your real estate agent, who will guide you towards a reasonable price and information about the property and its market. You can easily review all the home options available in that location according to your need.

Yes, it is your first home, so it is completely normal to get excited and have expectations but don't let them blind you to the extent where you exceed the budget in fulfilling your desires.

Although a house is a huge investment that will last for years, it should not end up in debt. So it is important to keep your budget in mind at all times. 

Explore Islamic Mortgage Options

Before exploring Islamic mortgage options, one must understand the term 'Islamic mortgage' and how it differs from conventional mortgage methods. In the traditional mortgage method, the buyer borrows money to buy a home agreeing to pay it back with an additional amount (interest). This act of paying interest is not permissible in Islam.

When an interest is included in an expensive purchase such as a property, it becomes a burden for the buyer to repay. Moreover, this creates an uneven relationship between the buyer and the lender since the lender unjustly earns more. 

In an Islamic mortgage method, the lender and the buyer agree to be the co-owners of a particular property by buying the home together.

The percentage of the property owned by the lender will be higher than that of the buyer. The buyer will then have to make monthly payments to the lender for the share he invested, and once the payment is made, the buyer becomes the sole owner of the property.

This system is the way Islam teaches man to act justly when it comes to financing. Therefore, Islamic Mortgage is a highly recommended solution for Muslims and non-muslims looking to buy a home without unnecessary expenses.

Make sure to look into a 100% riba (interest) free system while calculating the monthly payments.   

Consult And Discuss With A Real Estate Agent

First things first, make sure to consult a well-experienced real estate agent to discuss your home purchasing plans.

If you think your work can be done without an agent, then you are wrong. That would only cause chaos. Without the aid of an agent, you will end up with all the paperwork that you are not familiar with, which will bring your dream of owning a home to an end. Although it would cost you money, it is necessary to have a professional to help you out. 

A real estate agent will do your work effectively as they are experts in the particular field and easily help you find a perfect home according to your requirements. You may also be provided with information that you will not find anywhere. They will also give you tips and support you in completing your offer in a better way.

Choosing the right agent will make your dream of buying a home successfully.

Tip: You can inquire about their job before hiring. Such as how long they are working as an agent, their real estate license and many more. Ask them to explain the home-buying process from beginning to end. 

Make An Offer

Here's the final step to consider before you buy your first home. If you have a mortgage agreement and a deposit, you are good to go and make an offer. Having a real estate agent will make things effortless as you can consult with them regarding the offer on the house you want to buy. Sellers would be more likely to trust you if you show them your pre-approved mortgage agreement or the approved finance.

Before you approach the seller, decide on how much to offer and the down payment you are willing to pay. You can make the offer via email, phone call or in person. It's best to get the assistance of an estate agent for this. Be aware of the competitors and set your offer accordingly. When the seller receives your offer, they may accept, reject or even request changes. Expect to negotiate, so while inspecting the house, make sure to note down if the house needs repairs so you can bargain.

If you like a particular house, don't get too excited and never rush to purchase without considering any of the above points. 

Tip: If you are unsure how much to offer, talk to your real estate agent and compare the prices of the other homes in that area and check the time the home was on the market. 

Conclusion 

We understand that you are anxious about making an expensive mistake while facing a big financial commitment, as it can be challenging for a first-time home buyer. That is why we bring this blog to help you understand better about taking the big step. Follow the guide before you purchase your dream home and have a stress-free financial life.