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Having our own home is one of our goals in life. We wanted our own place that we can share with our loved ones.
In buying a home, you have taken considerations your long time goals, Your plans and your purpose. Investopedia listed down 5 questions to ask yourself when buying a home. Source: Top Tips For First-Time Home Buyers
- What type of home best suits your needs?
You have to know what type of house you wanted to buy. It could be a single-family home, a townhouse, a condominium, or a multi-family building. Take note that each type has its advantages and disadvantages. You have to choose a type of home that will help you meet your goals.
2. What specific features will your ideal home have?
Lists down all the ideas you have in your mind including your desired neighborhood, the bathroom and kitchen layouts, the furniture and the appliances.
3. How much mortgage do you qualify for?
And now that you have listed down what your ideal home will be, you have to check how much mortgage will you have. You may think that you are qualified for a higher loan but the lender may see it otherwise. Factors to consider are your monthly income, expenses, and your other loans or debts like your credit card purchases.
4. How much home can you actually afford?
In contrary to the number 3 question, In here, The lender may give you a higher loan approval. But, that doesn’t mean that you can afford to pay it. You have to consider factors like the maintenance fees, Real Estate Taxes, Insurance, your monthly amortization and your downpayment.Also, you have to include some economic issues, family expenses, and other financial issues.
5. Who will help you find a home and guide you through the purchase?
One very important guide in buying a home. You have to get a realtor. Someone who could help you in the buying process and will help you to negotiate with the seller.
To further help you when buying a home, Below are guidelines from Forbes article 10 Things You Absolutely Need To Know About Buying A Home
- Use a trusted realtor
- Remember that a house purchase involves a contract
- Don’t necessarily buy for the life you have today
- Think about commitment
- Look beyond paint
- Buy the house you know that you can afford
- Don’t fixate on the purchase price
- Consider your student loan debt
- Don’t get carried away by the home mortgage interest deduction
- You don’t have to buy a house
You may also list down this 6 must do’s before buying a home by Bankrate.com
- Strengthen your credit score
- Figure out what you can afford
- Save for down payment and closing costs
- Build a Healthy Savings Account
- Get Preapproved for a mortgage
- Buy a House you like
As you notice with the tips and guidelines, they have something in common and similarities. Those bits of advice would only like you to be smart, careful and be vigilant. It’s your life whose at stake and you just don’t want to put your hard earned money into nothing.
For more tips and guidelines, here are some good reads:
- 10 tips in buying your first home
- 50 House Buying tips
- 10 Best-kept-Secret in Buying a Home
- 8 tips for buying a home