Almost everyone dreams of owning a home. With fluctuations in the housing market, buyers have to evaluate and consider a lot of information before making such a huge investment. Here are some questions that prospective buyers should ask themselves before purchasing a home:
Are You Purchasing a Home for the Right Reasons?
Figuring out the exact reason why you want to commit to purchasing a home is important. Many individuals feel as though they have to live up to the standards of society. In reality, you need to know whether or not the purpose for your purchase is worth the investment.
Can You Afford It?
It can be pricey to purchase a home. Before searching for your dream home, figure out what you can reasonably afford. Don’t just look at your current salary or bank balance, take into consideration all of your extra expenses, debts, student loans, credit cards, and car payments. How much of a down payment can you afford? Have you looked into getting a loan and read the fine print? It may be best to utilize a financial advisor to assist with needed calculations.
Have You Considered the Cost of Home Ownership?
Many people compare their cost of rent to paying a mortgage but don’t realize that there are additional costs when owning a home. Have you thought about property tax, maintenance fees or homeowner’s insurance? In the end, you may end up paying more than your current cost of rent.
Is Your Career Path Stable?
You may feel as though you’re financially stable enough to purchase a home, but are you expecting any changes in your career? Some jobs require their employees to move to another location. Other jobs show signs of financial hardships which may lead to layoffs. If you plan on sharing the home with someone, can you handle the payments on your own in case they have financial difficulties? If you don’t have a solid career path, it’s best to work on your career development before buying a home.
What’s Your Ideal Neighborhood?
When choosing a neighborhood, don’t think about what you want right now, think about your ideal neighborhood in the future. If you’re young, you may love the sounds of the city, but when you get older and possibly have a family, will the city life still be what you prefer? Purchasing a home is a long term commitment. The last thing you want to do is change your mind and risk losing everything you’ve invested.
Are you Working with the Right Realtor?
Find a realtor who knows the specific area you’re interested in to make purchasing your first home a positive experience. Interview realtors and make sure they understand your wants and needs during the process. This can also help make you aware of any realtor fees and flexible availability.
If you have any further questions, feel free to call Alex Biliouris at (401) 769-4333. He will put his extensive experience investing in real estate, to work for you!