Purchasing a new property is going to be an expensive venture, and not something that you should take lightly. This is a massively important transaction, if not the most important transaction that you will make in your lifetime. Make sure you consider the following 7 questions before you purchase a new property:
1.Why Do I Want To Buy This Home?
Knowing why you want to buy the home ensures you have realistic expectations, so make sure your reasoning is solid. Don’t buy a house because you think it’s going to be less expensive than renting, because that won’t always be the case. You should have factual, proper reasons for wanting to actually buy a house over the other options available to you.
2.How Long Will I Be Living In The Area?
It should be at least 3-5 years before you plan to make a move again. This is the only way you’re going to break even on the mortgage. If you move sooner than this you’ll end up losing a lot of money in fees, so be smart and make sure it’s somewhere you would like to stay put for the foreseeable.
3.How Much Can I Afford?
Very tempting to spend more than you can really afford when looking to purchase some Real estate. However, you must make sure you can properly afford the home before you buy one. It should be no more than 25% of your gross income for your mortgage payment, or perhaps up to 28% if you don’t have any other debts to pay.
4.Is My Real Estate Agent Credible?
Your real estate agent can make a huge difference to whether the house buying process goes smoothly or not. Make sure they know the area and that you have done your research on them.
5.Has The Home Passed Inspection?
Making sure the home has passed inspection will mean avoiding running into costly repairs once the house is yours. What is included in an inspection may vary depending on where you live, so make sure you check this out first.
6.Is This The Right Property For Me?
A property might be great, but that doesn’t mean it’s the right one for you. Make sure you look at plenty of them so you get a feel for what you want and what you don’t want. Have a list of questions and a checklist you can look at to stay on track while viewing. Are there any risks due to the build or the location? What are the neighbors like? Does it need work?
7.Am I Mentally Ready To Become A Homeowner?
Finally, it’s important to consider whether you are mentally ready to become a homeowner. There’s an important emotional process that many potential homebuyers forget to consider. Your heart, mind, and finances all need to be in the right place for this to be a good idea for you.
The type of home you’re interested in could also factor in to how ready you are mentally. A fixer upper might be your ultimate dream, but they require an ongoing financial investment and are very stressful. Waiting might be the best option if that’s what you want. The less risk you can handle, the newer the houses you should be looking at (as a general rule).