If you’re thinking about buying a home, it’s important to know that newly listed homes have increased in price by 32.6%. In certain areas, you can find an increase of 43%.
If you’re considering buying a house there are some things you’ll want to know. Read this buying a house guide and what you’ll want to know before you make that big purchase today!
1. Consider Your Total Budget
Taking a look at your entire budget is important since lenders will only factor in so much. They won’t factor in your monthly expenses such as groceries and other items.
It’s a good idea to calculate all of your costs including going out to eat. Consider that your mortgage payment is only part of it.
If you don’t put at least 20% down (depending on the mortgage), you’ll need to pay what’s called PMI. It’s short for private mortgage insurance and won’t go away until you have at least 20% in equity down toward your home.
Some neighborhoods will have HOA fees, take a look at those because they can be pricy! Think about if you’ll need to perform renovations to the house that you’re considering and how much it’ll cost.
Speak with your lender about a pre-approval letter before going to look at homes. It’s also a good sign for sellers to see that you can afford their asking price.
2. Find Out What’s Included
If you’ve found the perfect home from URB Chicago or another company, you’ll want to find out what’s included in the sale of the home. You might think that certain items are included with your new home that won’t be.
In the offer letter, ask what’ll be included and what won’t. You might be able to ask for certain items that you fell in love with along the way.
3. Stick To the Pros
Not having a real estate agent in the process when you’re buying a house could mean missing out on important steps. You might forget to have an inspection to ensure that the home is good to go. It’s best to choose an inspector independently instead of who your real estate agent recommends.
4. Don’t Be Pressured
Whether it’s the lender, real estate agent, or seller, don’t feel pressured to make a rash decision. Remember that some real estate agents will have their eye on the prize and try to pressure you into buying. Speak with your family about whether or not a home is right for you and don’t rush into it because others are telling you to jump on it.
5. Go With a Home That You Can Maintain
If you’re interested in flipping a house, that’s much different. But if you’re not, you’ll want to focus on a home that you and your family can take care of.
A home that you dream about turning into the perfect location might feel exciting until it’s time to get to work on it. Larger yards will require more maintenance year-round whether it’s shoveling snow, raking leaves, or mowing the lawn.
If you see children in the future you might want to consider a home with a yard for them to play. See longevity when you’re looking into the perfect home.
6. Understand Loans and Down Payments
Speak to your lender about what loans you qualify for. While they all don’t require 20% down, some might still have you pay for PMI.
If you were or are in the military you might qualify for a VA loan. If that’s the case, then you don’t have to worry about putting money down.
FHA is a common loan and you only have to put a small amount down. You’ll still need to worry about PMI though.
Remember that the less you put down toward your home, the more you’ll need to pay each month. Find out from your lender how much your payments will be each month all said and done including insurance, PMI, etc.
7. Be Realistic
Be realistic as you’re looking at real estate. Think about your must-haves and nice to haves.
Write down a list with both of these and do a comparison. It’s a good idea to think about what your budget will be and what you’ll find.
If your budget is $300,000 and you want 4 bedrooms, it might not be realistic in your area. Think about what you have to have whether that’s 3 bedrooms, 2 bathrooms, and adjust your budget.
8. Shop in a Quiet Market
Consider shopping when it’s less competitive. The winter months tend to be quieter, but it’s also more difficult to move when it’s snowing.
The spring and summer months tend to see homes sell above the asking price. If you’re looking for a house within budget, consider looking in the winter.
9. Have Multiple Viewings
Check out the home that you’re considering on multiple days. See it on rainy, sunny, and cloudy days. Decide if it’s too bright, dark, etc.
You’ll also be able to spot any drainage issues in the home on a rainy day. If it does, this could be easily fixable.
Buying a House Guide: Things to Consider
After exploring this buying a house guide, you should have a better idea of things to consider. Take your time looking through the different options and deciding what the best option for you is.
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