Preparing To Purchase
Homeownership is a beautiful goal that many people aspire to achieve. Whether you’re a first-time home buyer, looking for an upgrade, or looking to downsize - buying a home can be a really exciting time. It can also be a bit overwhelming, especially in today’s market. Here are some things to consider as you prepare to purchase your next home!
Understand Your Budget
Knowing what you can afford can feel a bit overwhelming. Seeing a two or three-hundred-thousand-dollar price tag could scare any sane person. However, when you break that down over the course of thirty years, it suddenly becomes much easier to imagine a home fitting into your budget.
Still, having a mortgage can be a bit more complex than renting. For example, mortgages require home insurance, PMI, taxes, and interest.
So how do you calculate exactly what you can afford?
Imagine Home Lending’s application isn’t just for those who are ready to immediately purchase a home. When you apply through Imagine Home Lending, your loan officer will get you a pre-approval letter.
This pre-approval letter will determine what price range will be affordable for your current circumstances.
Imagine Home Lending can also share a monthly cost breakdown of any properties that you might be interested in. This will show you exactly how much your mortgage payment will be (principle, taxes, interest, and all)! Imagine Home Lending wants to take all of the guesswork out of house hunting.
What Kind of Home Do You Need?
Do you have small children, a very hectic work schedule, and little construction knowledge? A DIY fixer-upper may not be the best choice, despite how fun and exciting HGTV makes it look.
Are you a bachelor who someday hopes to start a family? The two-bedroom 900 square foot house may sound perfect now, but will it still work two years down the road?
Consider your current needs along with your future needs, and factor that into what features will be on your house-hunting checklist.
Location, Location, Location
There are a few things to consider when choosing an ideal city or neighborhood to buy your next home in. These factors include:
Local taxes - one city may have much lower taxes than a house five minutes down the road. Doing research on taxes of your neighboring cities may save you thousands in the long run.
School District - If you have children, choosing a home in a school district that can meet your family’s needs is crucial. As well, for home shoppers who do not have or do not want children, choosing a home in a great school district can boost your resale value by a significant amount. The catch-22 is that most cities with great school districts tend to have slightly higher tax rates.
Nearby attractions or deterrents - Be on the lookout for attractions that could boost the appeal and resale value of the home. These might include proximity to hospitals, parks, shopping centers, or interstate access. In contrast, be aware of any potential deterrents that could diminish the value of the property. Such deterrents might include being on a flight path for the local airport, proximity to busy, loud intersections, or homes in high-traffic areas.
Find A Realtor That You Trust
Now is the perfect time to start asking your friends for recommendations. Your peers will give you their honest feedback about their experiences - making it easier to find a trustworthy Realtor. As an alternative, your loan officer will be able to offer recommendations for rock-star Realtors in your area. Even if you won’t be ready to buy for another few months, you can establish a relationship with a realtor early in the process.
One benefit to establishing rapport with a realtor early in the process is that Realtors are able to send clients up-to-date listings. Online databases aren’t typically updated as quickly as the listings that your realtors have access to. This can prevent you from falling in love with a home that’s already under contract.
Start Preparing Now
Whether you’re hoping to purchase a home in the next three months or next year, doing a bit of preparation can help you go into the home buying process feeling confident, qualified, and certain of exactly what you need out of a home before you put in your offer!