When it becomes time to invest in your first or next home, it can be extremely exciting. However, when you start checking out all of your options on the market, you can easily get overwhelmed. Fortunately, we’re going to share some great tips with you to help you with purchasing a home that fits all your needs.
Start With Choosing a Location
One of the best places to start narrowing down your home search is with its location. It pays to look at a map of your area and see the different neighborhoods and communities available to you. It makes sense to determine a location that is relatively close to your work, stores, and other necessary amenities.
Unless your plan is to live out in the middle of nowhere away from any neighbors, you’ll want to make a list of neighborhoods that fit within a small driving footprint of local locations that you’ll regularly visit. Additionally, you’ll want to ensure that the neighborhoods on your list have home prices that fit within your budget.
Consider Your Sizing Needs
Size makes all the difference between having a comfortable and an uncomfortable home for your family. It’s vital to assess your current space needs and how they may change going into the future. Think of your needs in terms of bedrooms, bathrooms, exterior space, and so forth. How many parking spaces do you need? Are you looking to have any hobby rooms or extra storage space? It’s best to take some time to write down a list of your sizing needs so you can ensure that you pick a home that meets or exceeds them.
Decide On Your Budget
It can be very easy to get pulled into looking at homes in the upper end of the price range that the bank gives you for a preapproval amount. However, you should consider the total, realistic cost of homeownership to formulate a budget that will set you up for future financial success. In most cases, homeowners can’t comfortably afford the homeownership costs that come along with houses at the higher end of their preapproval amounts.
In regards to purchasing a home, there are a few different upfront costs that you’ll need to prepare for. These include closing costs, appraisal fees, down payments, and inspection fees. Most of these will be a set percentage of the purchase price of a prospective home.
Once you purchase a home, there are various ongoing expenses that you’ll need to budget for. These include your mortgage payment, insurance payment, private mortgage insurance, property taxes, utilities, and maintenance. Within the first year of owning a home, many homeowners find that they end up paying for unexpected expenses. Some of these include lawn care, snow removal, pest control, and security system installation.
Choosing the perfect home requires a delicate balance of budgeting and planning. From knowing what size home you need to ensuring that you can comfortably afford it, homeownership is a big step for anyone. By following the tips that we went over above, you can set yourself up for purchasing a home that you’ll love and enjoy for decades to come.
