You know how hard it can be to buy your first home and how lengthy and complicated the process can become. When your child is going through the process, you don’t want to overstep your bounds, but you want to make things as easy as you can for them. Here are a few home buying tips to pass on to them.
Help Them Understand What They Need
Talk to your child about what they require from their property. For example, if they are working from home, explain the necessity for a home office. If they will be living alone, help them set realistic expectations for what they will be able to afford.
Help Them Prepare For The Cost
Walk your child through the expenses they can expect every month as a homeowner. Even if they have rented before and are comfortable paying their energy bills, remind them that they will pay much more in insurance. Their tax situation may be different (USA Today) depending on where they live.
Help Them Look For The Best Mortgage Possible
Look for a home loan or mortgage that will help them in the long run. Find out if they are eligible for any government or institutional support for their loan or deposit. If they are applying for a conventional home loan, help them to understand what they are getting into. What is a conventional loan? According to The Home Loan Expert, It means that there is no government support, and the terms are to be negotiated by you and the provider. Talk to them about the repayment schedule and how low upfront costs may hide high-interest rates.
Help Them Prepare For A Long Hunt
Stay up to date with the latest market news through the NY Times so that you can help your child understand the landscape. If the incredibly competitive market is making it too hard to find somewhere in their price range, remind them that patience is important.
Help Them With Their Finances
Go over your child’s monthly expenses with them and help them work on their credit score. Check that they are paying their debts on time and that there are as few unanswered questions on their loan application as possible. If they are struggling to put a deposit together, can you offer them a temporary personal loan or a cash gift?
Help Them To Feel Safe
Find them a good home insurance quote to get them protected as soon as they move in. Ask what home security options the property comes with and help them secure an upgrade if necessary. Remind them that you are always available to help if they need you and that, even though the pandemic has left a lot of us feeling isolated, they are not alone.