7 Essential Considerations You Should Think of Before Buying a Home

Buying a dream home probably tops every man’s bucket list as one of the biggest family investments they will ever make. Whether you prefer an urban apartment or a suburban home, the key here is making it feel like it was specially made for your family. The downside to this is that once you feel ready to own a home, you will probably rush through the process. Such hurry will only see your family end up in a house they don’t associate out of their taste if not risking foreclosures. Consider thinking through these points before committing to home ownership.

7. Consider your financial standing

This is the single most important consideration every potential homeowner should think through when preparing to buy a house. Do you have enough money to fund the down payment and can you afford the mortgage? Usually, this involves a 20% house deposit and subsequently fixed mortgage rates. Once confident you can afford the two without tweaking the terms towards creative financing, go ahead with the purchase.

6. What is your average credit score?

This is as important as your financial stand given that it determines your mortgage eligibility as well as the interest rate. If you score less than 720 on credit score, you might want to shelve the home buying idea as you work on improving your credit score. Rushing in with a poor score will only attract huge interest rates that won’t change for the life of the loan even after improvement in score.

5. Current and projected real estate trends

Consult an expert opinion when deciphering the real estate as well as the credit market trends. For instance, if the real-estate market trends show a declining market trend, it might be wise to hold onto the home ownership thought. Who knows, a few months later you might be inking a better deal on a similar home. Additionally, home buying when the interest rates are at a trough will earn you reduced rates now and in future.

4. Commitment to the same location

It is also important to weigh your prospects of remaining in the same place in the foreseeable future. Consider the possibilities of changing jobs or transfers that force you to shift residences. Buy a home in the area you feel inclined to stay for the rest part of your life.

3. Homeownership costs

Apart from the mortgage and closure fees, you should also consider other home ownership costs and their effect on your future incomes. Such include homeowner association fees, property rates, as well as monthly utility charges. Most of these are recurrent and can eat up a significant amount of your incomes.

2. Location of the home

The site of the property can have both pros and cons on its desirability to both your family and future potential buyers. Consider the friendliness of the local environment such as local laws as well as crime levels.

1.Family desires

Ensure the dream home is in line with the wishes of your family members if you are to have an ‘ever happily after’ moment. Put all your family desires of a dream home like space, neighborhood, design first when buying a home and if it can’t match up to their expectations, ensure there is room for modification.