One – Think about the costs of owning a home, not just buying it
So, you are renter. You may not stop to consider that all the little problems that you would tell you landlord or rental company to fix is not going to be your problem. You should think about the repair costs that go in to owning your home. Could you afford to replace the hot water heater? An air conditioner unit? When you are thinking about your budget for your house, make sure you remember to add in these items as well;
Utilities for a larger space, property taxes, monthly maintenance costs for a pool, yard and trees, Home Owner Association fees and utilities you may not be paying for at a rental like trash and water.
Think about how much work you may want to do on the house as well. Will there be some serious redecorating happening? New furniture? Paining? Take a pause and add up all the little things you want to do that add up to a big credit card bill if you are not careful.
Two – Not a lot to think about here – you must hire experienced professionals
This is really a no-brainer. But, let’s discuss it anyway. You must hire an awesome, smart, reputable realtor to help you buy a house. Don’t go it alone on this one. And if you are buying new, the realtor that works for the home builder is helpful, sure, but they do not work for you. Get your own realtor. Period. Find the best mortgage broker you can find. Broker, not a banker. The advantages are too great to mention here. Get a mortgage broker. Same goes with every other professional in your arsenal. Get the best home inspector you can to find all the issues now.
Three – Think about what you can actually afford
Remember that the amount you are approved for when you get your mortgage may actually be more than you can actually afford. Think about a possible new upcoming expense like a new car, the home improvements we talked about or a new baby. Hey, things happen. Be sure to leave a little wiggle room in your budget. This is why you need the best mortgage broker on your side, they can help you and talk about your future budget concerns.
Four – Think about your daily life and look at the HOA
Just do it, ask for the HOA contract. You should be sure that you can live with the restriction. If you are a basketball fanatic and shoot hoops every day after work to relax, do you want to live in a home that you aren’t allowed to have a basketball hoop in the drive? Is that a deal breaker for you? Do you want to grow your own veggies, but may not be allowed? These are things you need to consider. Yes, it is dry reading, but it needs to be done. As mentioned before, this is also a god time to find out the HOA monthly fees.
Five – Think about the future you
Yes, you have to get approved for a loan today, and you may not be able to buy all the house you want for ten years in the future, however let’s think about the near future. Will you be in this job long term? Are you already thinking of adding three kids? Do you want to retire in two years and have an art studio? You can think about some of your goals – and yes, life will throw you curve balls – but you can have some input here. Sit down and talk out where you want to be in a few years. Maybe it is worth the stretch to get those two extra rooms? Just think about it.
When you are ready to start the process, as number two tells you, look for professionals. We are here to help you get all the questions answered. Think about it and give us a call today. We can help you sort through these great thinking points.
Lending Maven Mortgage