Buying a home is a significant event that leaves little room for carelessness or mistakes. You must plan carefully and act efficiently to make the best decisions during this process. Remember the following five tips to make a wise and responsible purchase for your new home.
Some people may be hesitant to use a realtor considering the fact that they receive a portion of the sales price. They actually don’t drive up the cost from your point of view as the seller is responsible for the commission. A good realtor will protect your interests while also guiding you through the buying process from start to finish. The listing agent may be the one to look out for as they have more to gain from commission resulting in less savings for you.
Buy With Your Future in Mind
Buying a house is one of the biggest financial investments you’ll make in your life. Before settling down to make such a large purchase, think about your future plans and how they’ll be affected by the home you have. Do you have any chance of relocating for work or even changing careers? Do you plan on expanding your family? If you aren’t certain, you may want to keep looking or postpone your purchase.
Buy What You Can Afford
What you believe you can afford may differ from what your mortgage company says you can. You may be approved for a mortgage many times more than what you can responsibly maintain. It’s better to stay on the lower end in the event of any future changes to your income, expenses or lifestyle. Give yourself room to adjust to any financial fluctuations in your future. Most lenders suggest to aim for mortgage payments around 28 percent of your gross income to accommodate for insurance and taxes as well.
Don’t Forget Additional Fees
Remember to keep in mind the costs that go beyond mere purchase price. You may need to save up for the down payment and/or closing costs. Other costs include insurance, homeowner association fees and taxes. Maintenance and home improvements will also add up. Additional buildings, swimming pools and advanced HVAC systems will cost more in the future.
Buy a Home Not Just a House
When finally making the purchase, make sure you buy something that you feel confident can become a comfortable home for you and your family. Your investment will no longer be that should you decide to suddenly sell and relocate in just a few years. Though it seems like it goes without saying, you must ensure you actually feel solid about the home you plan to settle on.