When Buying A Home
Things to know
when buying your home
When starting the search process for a new home, it's important
to analyze your wants and needs first and then communicate
that information to your REALTOR®. Some things to consider:
- Do I have a steady income?
- Can I add a mortgage payment (or a higher mortgage payment) to my existing debt load?
- Will I be able to make a down payment?
- Do I have time to devote to buying a home right now?
- Do I need more space?
- Am I seeking the "pride/dream of homeowners"?
First time homebuyers in particular should examine:
- Can I afford both the mortgage and other expenses, such as electric, water, repair and maintenance costs?
- Do I plan to live in the house long enough to build equity?
- Do I have time to take care of a house - including responsibilities
like mowing the lawn and repairing my property each spring?
How to Evaluate Your Needs and
Wants:
Before you embark on your search for the perfect house, it
is important that you make a realistic "shopping list" in
an attempt to narrow your choices of properties. This is something
that your REALTOR® can help with. Hunting for a home can be
a time consuming process, especially if you have not determined
in advance the parameters of your search. Many homebuyers
make the mistake of misinterpreting a WANT as a NEED.
Examples of NEEDS:
- Enough square footage for comfortable living
- Enough bedrooms to accommodate your family
- Adequate number of bathrooms
- Eat-in kitchen
- Garage or basement for storage needs
- Lot size to accommodate children's play area
Examples of WANTS:
- Carpeting color, paint color, exterior color, roof color, etc.
- Pool or Jacuzzi (unless for medical reasons)
- Wood floors
- Bay windows
- Built-in entertainment center
- Skylights
Getting Financially Prepared:
- Determine your existing debt load, including school loans, auto loans, credit card debt.
- Investigate loan option with a mortgage company or mortgage broker.
- Obtain pre-qualification with a lender.
Buying and Selling Simultaneously:
What to do when you are looking to move and you're not sure
which should come first - buying your new home or selling
your existing home:
- Communicate with your REALTOR® so he/she knows your needs and your timeframe.
- Carefully calculate your financial needs, preparing for a worse case scenario.
- Ask your REALTOR® about possible buyback programs.
- Investigate bridge or short-term loans options for paying both mortgages.
- Determine if the purchase of your new home is contingent on the sale of your existing home.
- Determine if you can afford two mortgage payments.
- Decide how much time you will need to leave your existing home upon accepting an offer.
- Investigate temporary housing.
