Top 5 considerations when buying a property
Determine what type of home best suits your needs
There are many options to consider when deciding which type of home is right for you. Perhaps a traditional single-family home is your style? Or maybe a townhouse, an apartment, a duplex or you may even want to buy land and build a brand new home. Each option has its pros and cons, and what matters ultimately is what you want and need in your home. Knowing this will help you make the perfect purchase.
What specific features will your ideal home have?
While it’s good to retain some flexibility in this list, buying a home is a major purchase decision and you deserve to have something as close as possible to your requirements. Identify what you need in a home now and what you may need in a few years. For example, do you have one child with plans to have another in years, and possibly a third? Is it possible you may have to consider your parents moving in at some stage? If you have teenage kids, you may think it’s important to have separate living areas and bedrooms at the other end of the house. Your current life and future plans should be carefully taken into consideration when thinking about the features your home will require.
How much mortgage do you qualify for?
It is important to know what your budget is for buying a home. Sometimes what you think and what the bank thinks are completely different. You may think you can afford a $600,000 home, but lenders may think you’re only good for $500,000. lenders consider factors such as how much other debt you have, your monthly income and how long you’ve been at your current job.
“What You Can Borrow & What You Can Afford Are Two Different Things – It’s Important to Know the Difference”
How much home can you actually afford?
On the other hand, sometimes a lender will give you a loan for more than you really want to pay. Carefully consider what you deem to be affordable. Maybe you can pay a large mortgage now, but what happens when you have two more kids, or if interest rates rise. At the time of writing this, interest rates are at all-time record lows, but that may not always be the case. Eventually, they will rise, as will your repayments. You may also prefer to have spare money for holidays and other luxuries, rather than everything going on your mortgage.
Who will help you find a home and guide you through the purchase?
A real estate agent will help you locate homes that meet your needs and are in your price range, and arrange an inspection of these homes. Once you’ve chosen a home to buy, these professionals can assist you in negotiating the entire purchase process, including making an offer, getting a loan, and completing paperwork. The team at RAY Real Estate have expertise that can protect you from any pitfalls you might encounter during the process.
Best of luck in your buying journey!