5 Things to Consider Before Buying a House

Written by Posted On Thursday, 21 February 2019 09:57

When you consider purchasing a home, there are a lot of different factors to keep in mind. If you're a first-time homebuyer, the process may be a little intimidating and even overwhelming. Even if you have experience as a home-owner, it can still be a difficult decision.

With that in mind, here are a few key things that you should consider before buying any house.

How Long Will You Live There?

Many people in the United States buy a home because it seems like the right thing to do. However, sometimes renting is a better choice. Possibly the biggest factor in the renting vs. buying decision is how long you plan to live in the home.

Statistics indicate that it usually takes 5 years for the average home to overcome the costs associated with moving. That means that if you're likely to live in the house for less than 5 years, you'll probably be better off renting instead of buying.

Can You Afford It?

Just because a bank is willing to approve you for a mortgage doesn't mean that you should spend all of that money. Being able to qualify for a mortgage and being able to afford a mortgage are two separate things. Don't rely on a bank or mortgage lender to decide what is appropriate for your budget.

Opinions vary, but one common approach is to budget 28% of your monthly income for housing (which includes a mortgage payment, PMI, homeowner's insurance, and property taxes). It's just a rule of thumb and other factors can influence the decision, but you don't want your housing expenses to be much higher than that.

What is the Neighborhood Like?

When you buy a house you are also buying into a neighborhood. Be sure that you evaluate the neighborhood and decide if this is the place where you want to live.

The neighborhood will have a huge impact on the value of your home and the appreciation, but it will also impact your life on a daily basis. The neighborhood should be as big of a factor in your decision as the house itself.

What Will Be Required to Maintain the Home?

Homeownership comes with a lot of responsibilities. You'll be in charge of maintaining everything in the house and the property outside of the house. Sure, you can hire others to do the work, but ultimately it is your responsibility.

If you've never owned a home before, you may be surprised by the amount of time and money needed to maintain a home. Of course, not all homes are the same. Some are low maintenance and some are high maintenance. Before you make a decision, be sure that you consider the costs of owning the home.

Will it Meet Your Needs Going Forward?

You're probably making your decision based on the factors as they currently are, but don't forget about the future. The home meets your needs today, but will that continue to be the case in the future?

Think about your family situation. Do you plan to have kids in the next few years? Will you have kids that are grown and moving out within the next few years? Will you have parents or other family members that may need to move in with you?

Health and also be an issue. Do you or any family members have any health issues that could impact their ability to get around? Will this house meet the needs of someone with physical limitations?

Think about your life in a few years and try to imagine how the house will continue to meet your needs.

While these aren't all of the factors that you should consider, these are 5 important questions that can get you on the right path and help to prevent you from making a mistake.

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