Buying your first home can be intimidating. With so many factors playing into the process, it can be daunting to know how to approach it. Buying your first home should be exciting, and it can be if you know how to break it down.
When considering the purchase of your first home, it’s important to plan thoughtfully for the best location, size of your home, monthly mortgage budget, and your future plans. If you can begin to lay out each of these individually, closing on your home will become much more realistic and foreseeable. To help you in the home buying journey, we’ve prepared what we believe are the 5 most important questions to answer before making the leap into home ownership.
What kind of home best suits your needs?
When it comes to houses, there is no such thing as “one size fits all”. Considering the size and needs of your family is very important. How many bedrooms are in the house? When do you need to move in? Are there schools nearby? Make sure to make a checklist of your needs, and look at homes that meet those needs.
What features are important for your ideal home to include?
While your needs come first, it is important to also understand your wants before you begin house hunting. If you lay out features and amenities that are important and affordable for you ahead of time, then it will be easier to navigate the homebuying process without getting roped into homes that you can’t afford with benefits you don’t need.
How much mortgage do you qualify for?
You can save yourself a lot of headache if you find out how much a lender is willing to loan you before you begin shopping for houses. If you find your perfect home at $300K, but you only get approved for a $200K loan, you are wasting your time and energy, only to leave yourself frustrated and likely unsatisfied with the homes available within your budget..
How much house can you afford?
Just because you get approved for a loan doesn’t necessarily mean you can afford to purchase a home at that value. It is important to determine a monthly budget that is affordable, and then do the research to factor in all your monthly costs. What is the rate of your mortgage? How high are property taxes? Are there homeowner’s association fees? These are just a few examples, and do not include the various other insurance costs, increased monthly utility bills, and taxes associated with homeownership.
What mortgage works best for you?
Financing your home is very important and should not be overlooked. The ticket price on a home is ultimately not what you will end up paying for it, as mortgage interests rates have a heavy influence on the final cost of a home. It is important to shop around and see what the best financing options are for you to have the lowest monthly and final costs. Interested in additional mortgage information for your location? Speak with one of our affiliates today to learn more.
It is important to understand the reality of the market and the home buying process. The more realistic and prepared you are, the easier you will find the home buying process to be. Take these steps and you’ll find that getting handed over your first set of keys isn’t as intimidating as it once looked!