uying a home can be stressful. We know how stressful it can be because we have to deal with stressed clients all the time. People come to us confused and worried about what type of house they may buy. We send them back satisfied and happy because we tell them to ask themselves 6 questions and now we are going to let you in on the same 6 questions. These are simple questions which can simplify the whole process of buying a home for you.
1 – How much can you spend every month?
The common piece of wisdom is that your house payments should be below 28% of your gross monthly income. You need to be honest with yourself and judge all your expenses accordingly.
A great way to see what monthly payment you can afford is to track your monthly expenses and see where your money gets spent. This will let you know not only how much you can pay, but also what you can cut back on to increase your range.
DO NOT STRETCH YOUR EXPENSES TOO MUCH. Here is the deal; the more money you spend the better it is for us as real estate agents, but as professionals in the industry who actually care about our customers, we would strongly recommend against spending too much. The last thing you need when you move into a new home is stress over making monthly payments. A smaller home is a happier home if you can afford it easily.
2- How much can you pay as a down payment?
This is the first step in a payment. The bigger house you choose, the bigger the down payment will be. Choose wisely!
3 – How long do you really plan on living here?
When you buy a house, you do not just buy the house, but also a place and environment to live in. You shouldn’t be buying a house if you plan to live here for less than 5 years. Moving for university or a temporary job? Buy a house only if you have extra money and plan to sell off the home later, otherwise renting might be better for you.
4 – Are you used to fixing stuff?
Remember when you bought your first car, and thought that driving it was all you needed to know but later you were all confused and had to go to the mechanic? Buying a home is just like that feeling multiplied by 10. If you are not good at handling tools then you need to limit yourself to newer, well maintained, and pricier homes. If you are comfortable with tools then you are all set for getting a fixer-upper which you can make perfect easily.
5 –What do you want to be around you?
This is as important as the house you are buying. What stage of life are you in? If you have kids then you need good schools to be around you. If you are a retiree who wants to live peacefully then you need a peaceful neighborhood. If you’re young and want to live in a lively place you need vibrant outlets around you.
6 –Where do you want to begin the search?
You can look at real estate listings in the areas you are interested in but we would strongly recommend contacting a real estate agent from that area. Real estate agents are paid by the seller, so it will not cost you anything. Plus their whole line of work is based on finding you a home that is perfect for your needs, so they make sure you get the right fit.
Buying a home is stressful, but only if you don’t know the answers to these 6 questions.