5 Questions to Ask Yourself Before Buying a Home
Looking for a new home? If this is your first time buying a new house, then you better ask these 5 essential questions to yourself before you hit the real estate agent’s office. If you don’t want to end up getting the short end of the stick, take a look at these.
What is my budget?
This is the first and most important question you need to ask yourself whenever you’re buying anything in life. From the littlest things to the biggest, what your wallet (or in this case bank balance) allows you, you take things into consideration after that. Make sure that there aren’t any loans or debts you have to pay, you have a steady income and have a good credit history. It is very important to have good savings and to be able to pay down payment easily while buying a new home. Therefore, manage your finances wisely first before making any major decision.
Why do I want to buy a house?
This is the next most important question you need to ask yourself. In fact, the first two questions are two sides of the same coin. Are you ready to get married and start a family? If you already have kids, then are they growing up and you need more space? Or you need to move to a better neighborhood and find some place closer to your work? Practical questions like these will help you determine what you really need in life. If you want to buy a house just because that coworker/boss/ friend got one or your spouse told you to buy one, then you really should assess your priorities first before making any move.
Can I afford the cost of living?
It is not merely enough to just to be able to buy a house and all is fine in suburbia. But it’s equally important to know if your income will allow you to live comfortably with the monthly expenses, keeping in mind your 401k, savings for your kid’s college (if you have any or plan on to have any) or your holiday expenditure. Take a step back, analyze all of that and then take the steps. Ask a friend or relative who has bought a new house or anyone living in the area you might know to give you some pointers of what it’s like to cover monthly expenses.
What sort of neighborhood can you live in?
There is a reason why the phrase “Location, location, Location is very famous. Anyone thinking about opening up a new business or buying a new house will always consider this important factor. If you are a city person, chances are you are not going to like a quiet neighborhood. Similarly if you seek the peace and tranquility, then run as fast as you can away from the city. Always research and drive through places to get a feel of what it’s like to be able to live there just to make sure.
What should be the key features of my house?
Remember, house shopping is just like you shopping for clothes, only at a grander and more concrete (pun intended) scale. You need to be able to know what you want in a house; just a pretty exterior and a good price are not enough. If this is overlooked, chances are you might end up paying more by refurbishing the house. Do you want a pool? Will your car/s be able to fit in the garage and driveway? Do I want a big kitchen? Is the backyard big enough for a good bbq or play area for the kids? Buying a house is a long term investment and you need to observe every nook and cranny of the house before signing the deed.
If you have already thought about these questions then you are on your way to getting a perfect house for yourself. If not, then I suggest you take time to think things through and have a complete SWOT analysis of the house buying dilemma. Good luck!