Making a big decision to purchase a property comes with its own unparalleled set of pressures. It’s usually considered as a sign of adulthood, approval of permanence, and most importantly the spending of a large sum of money. This is the reason why it makes sense that no one wants to engage in it in a casual way.
Buying your first house is one of the biggest purchases you will ever meet in your entire life. So, before choosing one to call your own home, you may want to ask yourself these questions.
#1 What is the reason why buying a home is important to me?
To answer this question you must have two reasons for why it will bear your happiness and two reasons for how it will bear your short and long-term goals. If you can find out the real reasons why you want to buy a house, it will help you navigate its challenges sooner. When things get difficult, it’s great to check in on the huge why of buying.
#2 Will my life be stable?
Do you feel greatly secured in your job to dedicate your life to a 30-year mortgage? Do you have adequate stashed away in savings to cover your mortgage for six months?
If you are married, are you satisfied? Is your partner someone you can rely on? These questions are important because divorce and job loss are two of the most common reasons homes result in foreclosure. You want to make sure that you are comfortable with the life you are having, your relationship is at prior to signing on the
If you’re married, are you happy? Can you depend on your spouse or partner? Will they be able to support you? This is why divorce and loss of a job at two of the most common reasons why houses slip in foreclosure. Before buying a home, try to check if you’re comfortable with where your relationship, job, and life is at before signing that contract.
#3 Can I really afford it?
Nearly all mortgage companies have actually tightened their lending standards by reason of recession. Nowadays, you will need to have some type of down payment in order to qualify for a loan. It’s worth taking the extra time to save up a 20% down payment if you can. This will just make you more pleasing to lenders, and you’ll save money because you don’t have to pay PMI (Private Mortgage Insurance).
It’s also important that your monthly mortgage payment is in an array that’s comfortable for you. Lenders may agree to give you a whopper of a loan. However, if your monthly payment is going to make things compressed, then you may buy a smaller house instead. A lot of people got in trouble in years past because they utilized every dollar they were “approved” for by lenders. You can use a mortgage calculator to make sure that you’re purchasing a home you can really afford. Don’t forget that your monthly mortgage payment is just the start of everything. Owning a home costs money. You need to pay homeowners insurance, property taxes, repairs, upkeep, and unending home improvement project you’ll wish to begin with.
Therefore, have some money stashed away for these unforeseen expenses.
#4 Do I want to live here 5 years from now?
A lot home new home builders think that the housing market is going to require at least five more years to actually recovers. This implies that unless you want to jeopardize losing money, you will have to stay in your home at least five years.
Just imagine yourself or future family staying there for five years as you’re looking at homes and neighbourhoods. Are the home, neighbourhood, and city filled with everything you need to be comfortable and happy? Is the house large enough to fit and accommodate a growing family (if ever you decide in the future)?
#5 Will it be okay with me to sell my house before finding a new one?
This question needs to be answered by a buyer who has a home to sell before buying another one. This can be a very confusing experience to be out-bid by another buyer who doesn’t have the contingency of selling their home. You may want to be in the most comfortable position possible to purchase your new home, and that calls for having your home in pledge with all contingencies disconnected, or putting the money in the bank which is much better.