Even though being a homeowner may have been your dream for quite some time, you may not have been as prepared for it as a home buyer should be. That’s completely normal and understandable since you were saving up for it or waiting for the right time.
The time is here now. You have this massive decision in front of you, and there can be no room for mistakes because buying a home is a long term deal.
To make this feel more like a good thing instead of a burden, check out the following tips.
Determine What You Can Easily Afford
It’s easy to look at beautiful houses and get caught up in the dream world. That’s why you need to first establish a budget.
You might be thinking about getting financing for your home and having monthly installments around the figure you currently pay as rent. While that’s all good, you might want to think about your other debts and your current savings.
Being a homeowner means handling other costs like taxes, maintenance, and upkeep. So, not having anything else to pay other than the mortgage and having at least two or three months of expenses in the bank is a good place to start.
You should also avoid making down payments of anything under 20% and try to keep the overall term under 15 years.
Other than the down payment, and maybe the design, you will also have to consider the closing costs of buying a house. To give you an estimate, you might need to think of closing costs as around 3% of the property’s price.
The most important of these closing costs would be the inspection. Getting a house inspection with Cohen Handler will allow you to determine whether a particular property needs more work or money to make it habitable.
Other things you will need to consider are appraisal, credit reports, a lawyer, and insurance.
Research Neighborhoods First
Before fixating on a beautiful home around town or another city, it may be good to research the areas. Since there are more chances that you are willing to sacrifice on the house’s condition and size than the neighbourhood’s quality and proximity to places, researching is crucial.
You can ask a real estate agent or go online to find out things like crime rates, proximity to good schools, what the people are like, and normal noise levels. You can then pick out a neighbourhood that you and your family feel good about. One need to inspect your locality before buying a property.
Think Long Term
Start going to open houses in your preferred neighborhoods and find out if you like any homes. It will also be a better way to look around the area.
While looking around, you should think of the long term. Find a house that will suit your family for at least the duration of your mortgage or even longer.
You should also try to go for the more affordable home or one that has less expensive décor than others on the block. This allows you to build up the value later.