Buying Your First Home? 5 Things You Should Ask Yourself First
Aside from college and a car, the house is also one of the biggest investments that you will make in your lifetime. Thus, it is crucial to have some critical considerations before you buy one. Here are some questions you should ask yourself before getting a place of your own:
Is It Time To Buy A House?
Most states would let you get a driver’s learner’s permit at 16. You can join the military once you reach seventeen and you will not be able to buy drinks until you are 21, but what exactly is the right age to buy a house? There is no exact age restriction when it comes to buying your own house, but some might say that you will not be able to do so until you are 18 since you will be entering into some transactions with a bank.
For couple Heather Clark and John Honkala, they realized that it was time for them to get their own house when they realized how expensive houses were becoming. The couple says that they both got sick of moving around and dealing with landlords, so this pushed them to get their own.
Are You Financially Ready?
A house is one of the biggest investments that you would have to deal with for life. Buying a house can have some serious effects on your finances, so you have to be sure that you can handle such a burden for the long term.
Fortunately, housing has become more affordable than ever and there are a lot of incentives which you can take advantage of such as low interest rates and tax credit. However, purchasing real estate also means that you will be dealing with a lot of costs, down payment, furniture and expenses involved in moving in. So give your finances a second look before you think of buying a house.
Can You Trust Your Realtor?
While you are about to make what could be the biggest investment you can make in your life, this transaction is just another day in the job of your realtor. Everyone knows that realtors get a cut from the sales price of a house and this is why some home buyers prefer not to get some assistance from them.
Do note, however, that it is the seller and not you, who will be paying the commission. Philadelphia based real estate agent Brooke Willmes says that buyers should be mindful that an agent is not duty bound to protect your interests. “That agent would simply pocket both sides out of the commission,” says Willmes. This is why it is important to engage the services of a realtor who works for you, protects your interests and is willing to guide you through the buying process.
How Long Do You Plan to Live There?
Several financial experts would agree that unless you have plans to live in a house for at least five years, you are not very likely to recoup any of the expenses that you would incur with buying and selling the house later on. In addition to this, your first few years of mortgage payments pay off interest and not principal. This means that you might not have a lot of equity in your house. If this is the case, you might be better of renting a home if you have plans of moving out in a few years.
Is This A Good Neighborhood?
A lot of first-time buyers are mostly young professionals or young families who want easy access to basic necessities, leisure as well as entertainment, arts, culture and sports. This is one reason why pedestrian and family friendly places are very sought after for those who are still starting out.
However, if you are buying for the first time, you might need to make some compromises when it comes to your first place. You might not be able to afford your dream neighborhood yet, but you surely have great options as well if your budget is pretty decent. Whether you go for a place with a good price and a good location, do be mindful that your initial purchase price will reflect the house’s market value.
You will be dishing out a lot of your hard earned money when you get your first house. This is a decision which you do not want to regret making this, it is important that you ask yourself these questions and more. Do you know anything else to consider before getting your own place? Share them with us in the comments below.
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