Mortgage rates, pre-approvals, real estate agents. These are all things that people talk about when buying their new home. While these terms may seem scary and overwhelming, they aren’t the only things you should be thinking about. Here are some aspects of buying a home that are often overlooked, but very important.
This one may seem like a no-brainer, but many fail to consider unexpected changes to their financial standing. You should never spend more than 40% of your income on housing, and most lenders recommend spending no more than one third or even lower. No one can tell you what the future holds, and you must be prepared for sudden changes in your financial standing. If you lose your job, you don’t want to lose your home as well. Start by looking for homes on the lower end of your approved mortgage and moving up from there. As you’re looking, keep other costs in mind such as home insurance (which is significantly more expensive than renter’s insurance), current and future maintenance costs, and any renovations you want to make to the home.
When you rent, your landlord provides many tools and appliances that you don’t have to think about. This means that when you buy your first home, you’ll have to purchase them for yourself. Remember to factor in the cost of a lawn mower and weed wacker, washer and dryer,plumbing tools, and more. Chances are, when you buy your new home, you’ll have more space than you had before, which means you’ll need additional furniture and decorations. If you’re planning home renovations, keep in mind that labor costs can triple the price of that new cabinetry you’ve been dreaming about. When saving for your dream home, don’t just put aside money for the down payment. Keep move-in costs in mind as well.
In real estate, location is hugely important. While you may be thinking about school districts and your commute time, part of your consideration should be on your neighbors. Do you want a quiet neighborhood where your neighbors keep to themselves, or are you dreaming of a yearly block party and hosting regular barbeques? Make sure that your neighbors will align with your needs. Once you move in, even if you’d like to keep to yourself most of the time, be sure to introduce yourself to your neighbors. The people who live around you can keep an eye on your house when you’re away, offer a sense of security in terms of keeping a lookout for intruders, and can offer assistance when you experience your first plumbing disaster. The quality of your neighbors can improve your life or make your life miserable, so keep them in mind before you sign the papers to buy your new home.
First-time home buyers experience a plethora of overwhelming and new decisions. You don’t have to do it alone. Contact The House Company today, and we will hold your hand through the process.