Ready to buy your first home but not sure where to begin? Here are some key recommendations from an experienced real estate developer.
Start by talking to banks early on.
Before you begin looking at properties, find out whether you’re eligible for a loan and how much you can borrow. Your borrowing capacity determines the price range you can realistically consider. Clarify what type of loan you qualify for, the maximum loan amount, interest rate, and what collateral is required (such as a mortgage). When assessing your financial readiness, don’t forget the additional costs that come with purchasing a home – notary fees, state duties, property valuation, and insurance. Also, be sure to plan for your down payment. Think about where this sum will come from – savings, the sale of an existing property, or other sources. In some cases, the down payment requirement can be reduced through a KredEx guarantee or by providing additional collateral, so it’s worth exploring those options.
Note that homes with an A energy rating are often eligible for better loan terms, as most banks offer preferential rates for energy-efficient properties. Also, keep in mind that from July 1, 2025, the VAT rate in Estonia will increase, which is expected to impact property prices as well.
Once your finances are in order, map out your needs and wants.
Take the time to clearly define what you’re looking for in terms of location and property features. Doing this helps you avoid impulsive decisions and makes it easier to distinguish between what’s essential and what’s simply desirable. It also enables you to compare listings against your criteria rather than relying on polished descriptions and attractive photos alone.
Think ahead about your preferred location.
You probably already have a general idea of whether you want to live in the city, countryside, or suburbs. But go further – consider whether the area offers convenient access to work, schools or kindergartens, and both public and private sector services. Think also about future needs, like a child starting school or a possible job change. If possible, visit the areas you’re considering. Getting a feel for the surroundings helps ensure that the quality of life outside your front door is just as enriching as inside. Look into development plans for the neighborhood as well – if the area is still developing, there’s a good chance that property values will rise. If it’s already fully developed, values are more likely to remain stable.
