Buying your first house is an exciting process. You have so many ideas on your mind about the kind of home you want. Some of these ideas would include the number of rooms your house will have if it has a garage or a lawn, what color you want to paint it, where you want to buy your house- would it be in the suburbs or on a hillside? Chances are, you have all these things figured out. However, buying your house requires a lot of planning which means choosing the right realtor, how you want to finance your house, and many other things. This article takes a look at the list of things that you should be aware of before buying your first house.
What Type Of Home Suits Your Needs?
Before you start your search, you must ask yourself: “What kind of house will cater to my needs?” There are many options when it comes to types of residential properties available in the market such as a duplex, townhouse, single-family house, condominium, etc. All of these options have their advantages and disadvantages. Therefore, you will need to weigh your options to find out which sort of property will suit you best.
Get A Home Inspection Done
Home inspection refers to a careful inspection of the structure and the mechanical systems of the house. You should hire a professional to do your house inspection for you as it will help you determine the actual value of the house in addition to saving you from any potential issues that could cost you thousands of dollars in the future. You must understand that there are different types of house inspections and what kind of inspection you want to get done. For example, the standard inspection does not check for mold, pests, and radon. You must ensure that the inspector gets to every part of the house, such as the roof and the basement. You must try your best to attend the inspection and ask any questions that come to your mind. However, if you are unable to attend the inspection, you must carefully review the inspector’s report to get an idea about the condition of the house.
Use a Trusted Realtor
It is important to hire a trusted realtor who will have your best interests at heart. It is common knowledge that realtors get a commission when a house is sold. They not only take a commission from the seller but also the buyer; this is why it may drive up the overall cost of the house. The listing agent will not protect your interests, as they are working for the seller. This is why you must hire a trusted realtor who will help you get the best deal for you, protect your interests, and will inspect the house for you to see if it is suitable for you to buy.
What Kind Of House Can You Afford?
It is important to carefully consider your finances and what kind of house you can afford and if you will be able to pay the mortgage in the coming years. Before selecting your payment plan, you should consider the interest rates on your house, type of mortgage and market, and your projected income. You also have the option of opening a new mortgage to decrease the overall interest rate on your house. You must take a step back to analyze your finances, even after your mortgage company gives you the word on how much mortgage you can afford. If there is even the slightest chance that you will not be able to make payments in the coming years, then opt for the less expensive option as it will give you the relief to keep making payments even after your wallet becomes a bit tight
Which Features Do You Want In Your Ideal Home?
Buying a house may be the biggest purchase that you might be making in your whole life. This is why you must want your potential home to have your ideal features. The list of your desired features may include the neighborhood you want to reside in, security and privacy, and even minute details such as the design of the bathrooms, kitchen space, living room space, number of rooms that the house must have, and so on. However, it is important to be a bit flexible in this regard and compromise if you’re getting an overall good deal on the house.
Assess Your Student Loan Debt
Before you dive into buying your new house, you will need to assess your student loan debt. This is because it can affect your prospects of taking out another loan. After the housing crisis, lending laws were revised in 2015 and were made stricter. After this revision, regardless of their deferment status, the borrower will be charged with 2% of the outstanding amount of the student loan debt. It is advised to enroll in a well-documented income-based repayment plan to have them ready if or when your lender requests to see them in to evaluate your ongoing liability.
What About Your Commitments?
Before you jump into buying your house, you may want to consider whether you will be able to commit to the house for the long term. For example, if you decide to get married or have more children, would the house have enough space for it? Or, what if you choose to move to some other state or country? In addition to this, you may even want to consider your options if you’re buying your house with your partner or spouse as in case of divorce or break-up, you may have to divide your assets. You must have an agreement with your partner in terms of payments, taxes, repairs, and liabilities. You may even want to hire a lawyer before getting your house.
You must carefully consider your plans before buying your house. You might want to consider the market value of the house and whether you’re going to want to stay in the same house for years to come. Buying a house is a huge financial and mental commitment. You must make sure that the house you’re getting is the one that suffices all your needs.
