For you to have a smooth transition after buying a new house, you need to plan thoroughly all factors. This makes sure that you will be ready for all the possible ins and out in buying a new house. Identifying your long-term goals is very important. Of course, having your own house is a symbol of independence. You need to narrow down the big picture and write down your goal.
Below are the things that you need to consider before buying a house:
The type of house that suits your needs
Choose wisely when buying a residential house. Each type of residential house namely a single-family home, a duplex, a condo, a townhouse, has advantages and disadvantages but this depends on your goals. You need to think first which type of house is practical.
The features of your ideal home
This is a huge investment and needs to fit both your needs and wants if possible. You may include your basic desires, namely your preferred neighborhood and size. You may also include smaller details like your bathroom layout and a kitchen.
The cost of the mortgage you are qualified
It is very important to get an idea of how much a lender can give you to buy your first house, how much other debts if you have any, your income and how long you have been in your current job. Make sure that your personal finances are in order. You must have good credit, a good history of promptly paying your bills and a maximum debt-to-income ratio of 43% in order to be qualified for a home loan.
The cost of a house that you can afford
A bank may give you a loan for a higher amount than what you really want. If a bank says that it will lend you $300,000 doesn’t mean you should borrow that amount as well. This is a common huge mistake of home buyers and ends up “house-poor”. They pay their monthly mortgage payment and then they have no funds left for other expenses like utilities, vacations, entertainment or food.
This is one of the biggest challenges. If the home purchase will be in six months to a year, then keep the money liquid. Make sure to have a high-yield savings account because it could have the best option.
Your guide through the process
A real estate agent can assist you to find a house that suit best your needs and in your price range. Once you have finally chosen, a real estate agent guides you in negotiating the whole process.