Notar's Guide to Your First Home Purchase

Buying your first home is an exciting and sometimes overwhelming experience. For many, it’s the biggest transaction they’ll make in their life, which involves many new decisions, rules, and concepts to understand. To help you along the way, we at Notar have put together a guide full of tips and advice to make the buying process a little smoother and more secure.

1. Set a Realistic Budget

Before you start looking for a home, it’s important to get a clear picture of your financial situation. Your budget will determine which homes you can afford. To avoid unpleasant surprises later, it's good to already consider:

Down Payment

You need to pay at least 15% of the purchase price as a down payment. This means that if you buy a home for 3 million SEK, you need to have at least 450,000 SEK saved.

Loan Approval

Contact your bank to get a loan approval so you know how much you can borrow. The loan approval is based on your income, any debts, and your life situation.

Hidden Costs

In addition to the home's price, other costs often come up, such as fees to the housing association, maintenance, insurance, and interest on your mortgage.

2. Get Familiar with the Housing Market

Before you make a purchase, it’s good to learn as much as possible about the market. Take time to look at different homes and areas, and understand the offerings and prices.

Compare Areas

Consider what factors are important to you, such as proximity to work, schools, transportation, and services.

Research Trends

How have prices developed in the area you're interested in? By following the market for a while, you can get a better sense of what is a reasonable price.

Attend Viewings

Even if you don't find "your" home right away, it's good to attend viewings to learn what you get for your money and what to be aware of when you finally find the right one.

3. The Viewing – What Should You Think About?

The viewing is where you get a first feel of the home and the area. But besides considering how the home feels, it's important to pay attention to several other factors:

Condition of the Home

Are there visible damages or signs of wear that may require repairs? Take a closer look at bathrooms and kitchens, which are often expensive to renovate.

The Housing Association’s Finances

For condominiums, the association's finances are important. Request to review the annual report and check the association's loans, as well as any planned major renovations.

The Home’s Layout and Potential

What does the layout look like? Is there room to make changes in the future if your life or needs change?

4. Bidding – How to Prepare Yourself

After finding your dream home, the bidding process begins, which can often be a nerve-wracking experience.

Stick to Your Budget

It can be easy to get caught up in a heated bidding war, but it’s important to stick to the budget you set from the beginning. Carefully consider your financial limits.

Don’t Let Emotions Control You

Bidding is often emotionally charged, but try to be rational. If you lose a bid, new opportunities will come along. Take a step back and think long-term.

Be Quick and Clear in Communication

Quick bids can sometimes give advantages in bidding. Be clear with the realtor about what you’re thinking and be swift with your decisions to keep the process moving.

5. Inspect the Home Carefully

Once your bid is accepted, it’s important to conduct a thorough inspection of the home. The buyer has a legal duty to inspect, meaning it’s your responsibility to check the home’s condition before signing the contract.

Inspection

For houses and some condominiums, it can be good to hire an inspector to review the home's condition. An inspector may discover issues you might miss yourself.

Ask About Past Issues

Check with the realtor or seller about any past problems with the home, such as moisture, mold, or other issues.

6. Sign the Contract and Prepare Financing

Once you've decided to buy the home, it’s time to sign the contract. The contract establishes all terms of the purchase, including price, occupancy date, and any warranties.

Double-Check All Details

Carefully review the contract before signing, and make sure you understand every point. If anything is unclear, don’t hesitate to ask questions to your realtor.

Prepare Mortgage and Down Payment

Make sure all financing is in order, including transferring the down payment and applying for a mortgage. Your bank will assist with the practical details here.

7. Closing and Moving

The closing day is when the home officially becomes yours, and you get the keys to your new home. Ensure all documentation and payments are in place to make the closing as smooth as possible.

Change of Address

Don’t forget to file a change of address with the Tax Agency and notify important institutions, such as banks, insurance companies, and subscriptions, of your new address.

Insurance

Make sure to have home insurance that covers your new home from the day you move in. This protects you if something unexpected happens right after moving in.

Final Tips

Buying a home for the first time can feel significant, but with the right preparation and a good realtor by your side, the process can be both enjoyable and smooth. Don’t hesitate to ask questions and seek expert help when needed. Good luck with your home purchase!