3 very important things to consider when buying a new house
Such a decision is never to be taken lightly. There is so much thought involved in buying a new home.
To make buying a house simpler, here are 3 questions you must ask yourself
1. Am I financially stable?
By far, the most important thing to consider when buying a home, is your financial capability. You wouldn’t want to buy a home, only to have no money left to furnish/renovate it, would you? This would just end up in needing to sell off your home, and then buying a smaller home where the expenses are manageable. A sad prospect. No. Make sure you know exactly what your financial capabilities are.
Here are the aspects of your finances to think about.
- Start saving for your down payment (usually 20%) well in advance.
- Check your credit scored. It is not advisable to make any huge purchases or move your money around 3-6 months before buying. Lenders need to know that you are reliable for your loans to be approved. Sort out any issues that might affect your credit scores.
- Explore your down payment options, loan options, mortgage rates and interest rates and compare multiple choices before making a decision.The real estate market is cyclical and has its ups and downs. Whether you’re buying a home for personal use or from an investment perspective, don’t wait for the “opportune moment”. If you have the resources well planned, buy the home when you can.
- At the point of buying, do not go into a bidding war that will make you cross your budget. Always stay within your budget. No point in buying a house and then being left with no money after your purchase.
- Keep aside a considerable amount of money for sleeper costs. These are the costs for repairs and renovation for after having moved in.
2. Do I have enough time to search for the right house?
Do NOT let any impatience and excitement overwhelm you when you’re buying a home. This could easily turn into years of nagging regret later on.
TAKE YOUR TIME. This is very important. And this goes for every step of purchasing your new home, right from hiring the right realtor.
Here are things to keep in mind
- Hire a good broker. There are tons of realtors out there trying to sell off old and rickety properties with chipped walls and broken furniture. Do not fall for them. Use your contacts and find out references. Hire a good and dependable broker who will understand your requirements of budget, facilities and neighbourhood. You must gel well with the broker to be able to frankly ask him questions about the house and the previous owners.
- You will obviously not have everything “perfect” in your new home as you envisioned it to be. Make note of the things you are not willing to do without, and the things you may be okay with compromising on. Maybe you could do without the luxurious walk-in closet that you want, but a good heating setup in the house is indispensable to you. Think about these things carefully, buying property is a long-term investment.
- Inspect every single thing about the house and ASK QUESTIONS. Do not feel shy or hesitant. Ask for whatever you want to know about. It is a huge chunk of your money you will be spending and it is your right to know exactly what you’re about to buy. Ask about the last time the appliances and furniture replaced, the last time the walls were painted, when the house or housing complex was built, how long it has been vacant, everything.
- Property disputes are an overlooked aspect of purchasing property. You must find out exactly what the extent of the land is. A lot of times people buy a house, the realtor runs off, and they’re then involved in land demarcation disputes with their neighbors.
- Think of tomorrow. Maybe you want to buy a car and need parking space. Or you need a more spacious house since you plan to start a family and adopt a dog. Or you always wanted a separate room to install a bar and pool table in. Think of your future. A house is a long term investment. It should have room to incorporate your near and distant future.
3. Am I ready to move into a new home?
Having considered all the previous things, you made your bid and bought the house. Now is the time for the post-moving-in task list.
There are various things involved here too.
- There are various sleeper costs involved after purchasing your house. Repair of appliances, buying and installing any extra appliances and furniture you need, repainting the house, and so on.
- Utilities are another important part to think about after moving in. Think of what you need – internet, landline telephone connection, cable or satellite TV, a heating system, air filters if you have allergies, maybe new grass and soil for your lawn, etc.
- Apply for and buy homeowner’s insurance. Always make sure that your property is insured.
- Become a part of the local homeowner’s association to get to know your neighbours and to have someone to call or go to if you have any problems with your house.
These are the important things to keep in mind to purchase a good home suited to your requirements. It is not a small decision by any means, and it stands to reason that you’d want to carry it out carefully.
Real Estate Local Professionals helps you buy or rent and move into your dream house with ease. If you need help with any of these services, get in touch with us here. We also help you hire the best packers and movers for moving home.
Have questions for buying or renting a house? Feel free to ask.
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