Buying something, anything, is always a risk. And, when you are buying a new house or apartment, the risk is even greater. If you are planning to rent a place after moving, don’t stop reading yet. The questions which we will be writing about today will be useful even if you aren’t buying your new home. So, before you begin counting the zeros in your bank account, let us give you some useful questions to think about.
When buying a home you should know what the reality is
Many people start looking at different houses online before even deciding what they want. This leads into them buying a home with one too many rooms or with the bathroom which is too small for them. And then, as you’ve probably guessed, comes more cost. So, let us give you some moving questions which you should ask yourself when buying a home.
The first moving question to ask is: What do I want from my new home?
Now this is a moving question which most people forget to ask themselves, so we are here to remind you. It is important to know the exact thing which you will want to do with this house/apartment, after buying it. Are you going to be living in it? Will you be renting it? Will you be expanding you family after moving there? Will you be having a new pet? All of this will influence your further decisions, and, of course, loan structure!
The second thing you should ask when buying a home is: How much money have I actually got?
This is the time to start counting the zeros. But, don’t be discouraged, because we want you to take into account all the zeros, not only the savings. So, when buying a home, we would suggest that you start by having all of your income, expenses, assets, savings, and debts in a single place. This will show you exactly how money you have to spend on the house you will be buying or moving into. If you are still uneasy, it is good to ask yourself if you need a financial advisor when buying a home.
Next, there is a clever moving question which will help you in buying the perfect home: What additional costs are there?
While it might seem like a clever idea at the moment to buy a home, we would advise you to think on it. First, instead of just looking at your living expenses and rent, take into account what other costs are there when purchasing a home. So, a good question to ask when you are thinking of buying a home is regarding what else is there to pay when moving. Luckily, we have a small list for you:
- Property taxes
- Home owner’s insurance
- Realtor fees
- Closing fees
- Insurance against natural disasters (if you are moving to California or Florida)
And now, there is more to think about before purchasing a home: What kind of loans do I qualify for?
As buying a home is definitely not a cheap activity, you may want to consider the option of a loan. If you have been saving for a while and don’t need one, feel free to skip this paragraph. Now, onto the topic of loans. When applying for one, lenders will look at your pay stubs, employment forms, and tax returns from the last two years. And, if you are buying your first home, there is the option of a Federal Housing Administration (FHA) loan. This is a great one, as it has only a 3.5% down payment. We would advise that you consider putting down as much money as you can, as it will make the latter payments much easier. So, when buying a home do consider which loan you ought to apply for.
Now let us talk about another matter concerning buying a home, as well: Where do I see myself in five years?
While this may be a question which you have encountered on a number of job interviews, we assure you that it has everything to do with moving in our context. As buying a home is a long-term investment, we would advise you to consider what you will be doing in the future. Especially, consider your future if you will be purchasing the home with a loan. Also, when moving to a place which you will be buying, be sure to consider other things, too. Like, your studies or your job, and if there will be an option of moving again soon because of them. Also, if you will be moving with your partner, discuss the future with them before purchasing your home.
A wise moving question to answer before purchasing a home: Am I ready to stay put for a while?
If your answer to this question was no, then we would advise you to reconsider buying a home now. If you purchase a flat or a house, you will be staying there for a time in order to pay off the loan or simply, in order to make your investment profitable. If your answer to our question was yes, then we believe that you are ready to seriously consider buying a house.
And finally, let us give you the final question which you should ask when buying a home: What kind of neighborhood do I want to live in?
You might want to take a look at some of our previous posts, in order to decide which city you want to be purchasing your home in. If you already have a place in mind, look up the neighborhoods in that city. We’d advise that you take into account different things, such as crime rate, affordability, cost of living etc. Also, after thinking about the practical side of buying a home, think about the idealistic side, as well. Consider what your family and live will be like in the future and then choose the perfect neighborhood for buying a home. Will it be one where you can play with your child in a nearby park? Or will it be one where you can run with your dog every day?
And now that you have taken into account all the questions regarding moving we have for you, you should be able to sensibly think about buying a home in a perfect neighborhood.