Posted on: 17 March 2021
Before you can start shopping for a home, don't forget to take some important preparation and evaluation steps to get you to the home-buying stage. Here are some preparation steps to help you get on track to buy a home.
Look at Your Finances
As a big part of your home purchasing ability, you will need to know what your finances look like and establish a budget for your home purchase. This step will require you to list all your debts and other financial obligations so you know what you have to work with each month. In addition to calculating how much you can put into a mortgage payment, also look at home utilities, which can be more expensive in a larger home than in an apartment, and other costs that come with homeownership.
For example, how much do you have saved now or how much can you put aside for a down payment by the time you are ready to close on a home? There are financing options available that require little or no down payment, but you may not want to finance the entire purchase. When you borrow more than 80 percent of a home's value, the mortgage company will require you to pay private mortgage insurance, which they add onto your mortgage payment.
Also, look at how much you will need saved up to pay for any expected and unexpected home repairs. If the home you are buying is in need of a lot of repairs, you should have savings or funds available to pay for repairs, such as a furnace or water heater replacement or a new roof. As a homeowner, you should always plan to have money saved up to pay for any number of unexpected costs that can come up as a homeowner. You will need homeowners' insurance, but will you be able to cover the insurance deductible?
Choose a Home Type
Just as there are a number of expenses related to buying a home, there are a variety of home types and styles. For example, do you want to buy a single-family home where you will have your own private land or a fenced-in backyard for your children or pets to play outside? A single-family home on your own lot provides you space to keep chickens, plant a vegetable garden, or improve the land in many other ways.
You may otherwise want to buy a home that is located downtown, which may require you to look for a townhome or condo to purchase. Although you will share some walls with neighbors in the community, you may also have amenities with the condo or townhome community, such as a pool, fitness center, and playground. As you shop for a style of home, be sure you check into any amenities that will come with your ownership of the new property.
To learn more, contact a resource like The Walski Global Team at Keller Williams Hudson Valley.Share