Are you planning on buying a home? If so, congratulations – buying a home is a momentous occasion. Before you get too involved in the process, though, you should take the time to ask yourself a few questions, questions that can help you pick the right home and make the right decisions.
Here are three questions that every soon-to-be home-buyer should ask themselves before moving too far forward.
What Can I Afford?
Keeping your home purchase within your budget is crucial. Buying a home that you can’t really afford is a common mistake that many fall victim to, mainly because buying a home is exciting and it’s easy to get caught up in the entire process.
All of your housing costs – your mortgage, insurance, etc. – shouldn’t cost more than a third of your monthly take-home salary. If your take-home pay is $6,000 per month, for example, your housing budget would be no more than $2,000. If your take-home pay is $4,000, it would be $1,333.
What Do I Want Most in a Neighborhood?
Neighborhoods matter. When you purchase a home, you’re actually purchasing entry into a community as well. So, make sure you know what you want in a neighborhood. Do you value peace, quiet, and privacy? Or, do you want to be around others who are around the same age as you, with children similar to your own?
Amenities factor into the decision as well. Being near amenities can be a powerful factor in choosing a home.
What Is the Absolute Most I’m Willing to Pay?
This goes along with the first question, but is so important I decided to emphasize it again. Have a price and stick to it – no matter what you see or what you encounter. Having a top price that is your absolute most you will pay will save you from overpaying for a home, plus it will help you make a decision with more confidence.
Ask yourself these three questions before you get too involved in the home-buying process and you’ll be more likely to make a strong choice for your real estate future.