Posted on: 21 December 2020
When you are ready to invest in a single-family home and settle down in an area where you plan to live for a few years, you can begin the process of evaluating your needs and your financial limits. Because you probably want to be able to stay in a home for a few years, this provides you the chance to pick out a home you will benefit from now and in the future. Here are some recommendations to help you through the single-family home buying process.
Establish a Home Budget
As a starting point, you will need to take a real and honest look at your income and expenses to come to a comfortable home budget. The amount of money you can afford to put toward a mortgage payment after all your other expenses are paid for should not stretch you too much financially so that you don't have any extra money or the ability to put money into savings regularly. If, for example, you have your home's furnace go out in winter, you will want to have the funds available to buy a new one without going into more debt.
In addition to calculating your future mortgage payment, also look at other costs that will come with homeownership. You will need to pay for yearly property tax and also homeowners or hazard insurance. When you buy a house, the utilities may be a bit more expensive than what you are accustomed to paying for, so be sure you save some room in your budget for this type of increase. For example, if you have been renting a small apartment that has very low heating and cooling bills, your new home may be a larger size and more expensive to heat and cool. And keep in mind you will need to pay for your own water, sewer, and trash disposal for your home.
An important detail in the home you choose to buy is its location. There are a lot of various features and details in a home that you can change with remodeling and updating, but you cannot change its location. So, be sure the home's location is within a reasonable distance of your work, for example, so you don't end up driving too far to go to work and back each day. If you don't want to drive further than 20 minutes to get to work, be sure to only search in areas surrounding your work that are within a 20-minute drive.Share