Tips and terms for the first time homebuyer

Buying a home is probably the most important investment that the average family will make in their lifetime, and for first-time buyers, it can get overwhelming. Here are some tips to help you make informed decisions on your way to homeownership.

Firstly, monthly amortization, or installment payments of principal and interest, should be less than half your take-home pay at most. You will have to be prepared to pay for more than the price of the home. There are legal fees, taxes, and housing loan interests and other costs that add up. Once you have set your budget, which you can determine through a pre-approved loan, it’s only a matter of shopping around for a house or condominium unit.

The local real estate industry offers a wide variety of residential developments, and your choice should ultimately suit your lifestyle and budget. Do you plan to raise a family, or are you looking for a small space close to your place of work? Familiarize yourself with some terms that you will encounter.

Single Attached - A single attached house is a unit shares a wall with another house

Single Detached - This unit is a standalone house with space around it, and is ideal for large families.

Townhouse - This refers to similar homes that are all attached in a row. End units of this type of housing usually have bigger lot areas.

Studio - Studio refers to a condominium unit that contains one main room, where spaces will be assigned for the kitchen, living and dining area, and sleeping area.

Mixed-use - Often refers to condominium developments that have both residential and commercial spaces. Some mixed-use developments will even have both condominiums and house-and-lots such as Primeworld District in Mactan.

These are only the basics of buying a home, and the process will require plenty of due diligence and research on your part. Make sure to contact a real estate professional to assist you with requirements. Also see to it that you consider only reputable developers such as Primeworld Land, which builds communities in Luzon, Visayas, and Mindanao.