Whether you’re buying a home for the first time, or you’re a seasoned real estate agent, buying a home is an exciting process. However, there is a lot to consider when you decide to buy. So, before you begin your search for the perfect property, here are some questions that you should ask yourself.
1. What Do I Want?
Take the time to think about what kind of property you want to buy. From single-family homes to condos, there are many different options on the market and it’s important to choose the best home to fit your needs. Understand the neighborhood you want to live in is equally important. While some properties might have all the amenities that you’re looking for, the town, the crime rate, and proximity to highways might impact the overall home-owning experience. Making a list that prioritizes your needs for your home before you begin your search will help you find the perfect place for your home.
2. What Can I Afford?
A good rule of thumb is to never spend more than 30% of your monthly income on your mortgage payment. Alternatively, you can afford to buy a property that runs about two and a half times your annual salary. For a more tailored look of what you can afford, check out an online mortgage calculator, this will help you get an approximate guess of what your monthly mortgage payments can afford to be if you bought a home today. This is a great article that can help you with more tips and tricks to find the perfect mortgage payments: HOW MUCH HOUSE CAN I AFFORD?
3. Am I Financially Prepared?
If you want to start searching for a new home, you should review your credit history to make sure that you’re in good standing. Get a copy of your credit report, ensure that it is accurate, then fix any issues that you may discover. You should also get pre-approved for a home loan. This will put you in a better position to make an offer once you find the right home. Pre-approval from a lender is based on your credit history, debt, and income.
4. How Do I Make the Best Offer?
Doing your research and speaking with your Realtor will make your offer that much more desirable. Your offer should be based on the sales trends of similar homes in the area, and comparable to the listing price. Ask your real estate broker reviews the selling prices of comparable properties. If these properties sold for less than the current asking price of the home you’re looking at, you can feasibly make a bid that’s lower than what the seller is asking.