Six Things You Must Know Before You Buy a House
Thinking of buying a home? It's going to be one of the biggest financial decisions you make in your life (if not the biggest). From familiarizing yourself with the duration of the stay to considering if you're 100% committed; here are six things you must know before you buy a house.
1. The Duration of Your Stay
While this is often overlooked, the amount of time you intend to spend in your house is one of the most essential factors to consider. Fundamentally, does the duration of your stay make more sense to buy rather than rent? Of course, giving a one-size-fits-all answer to this question isn't easy. Every real estate market is different and it will require substantial analysis to determine if buying is the right call.
That said, it is possible to predict whether the time you intend to spend at a place warrants the purchase. Experts suggest that on average, it'll take you between four to seven years to reach the breakeven point for a home. At this point, the value of the home would have appreciated enough where it can pay you back the cost of ownership and the transaction cost. So if you're thinking of buying and then only living in the house for two years, you're better off renting a house.
2. Down Payment Options and Your Loan Approvals
Perhaps one of the most essential things you must know before you buy a house.
Innova Realty and Management are saying that getting pre-approved for a loan can give you a good idea of the kind mortgage you can handle, which makes this an important step. Your mortgage approval numbers will also decide how much you'll have to put aside for a down payment (20% is usually a good number), but this can also vary for a few government FHA loans and the individual deals you can make with a seller.
If you find a house that is above the pre-approval limit, or if you can't afford the 20%down payment amount - move on. It's important to stay within your means, regardless of how much you love a house.
3. What Does the Neighborhood Look Like?
Take a walk.
Explore a few blocks in every direction and see what you can. What do the houses look like? What do you see in their yards? Is the neighborhood cleanly built and deteriorating with time? If it makes you feel uneasy, reconsider your options. You should also study the average prices of the neighbor
T4. he Direction of the Windows
A small but surprisingly essential detail.
This will dictate the amount of sun your house will get, when it'll get sun, and how hot it can get if you leave the windows open. It's an important facet of house management and it will also tell you how to maintain your house's lawn.
5. Your Emotional Status
While it may sound simple, your emotional state when buying a house is critical. However, home ownership isn't everyone's cup of tea. Buying a house requires commitment that some potential buyers aren't ready for. Some people want to travel or find their dream job. Even more importantly, this decision comes with additional responsibilities that many people don't want to deal with.
Your life will change drastically when you go from being a renter to an owner. If something breaks, you'll have to fix it, not the landlord.
6. Can You Stay Committed?
We're not just talking about your mortgage.
When you're married, the laws of the state you reside in will dictate how your assets will be treated and ultimately how they'll be distributed if you get a divorce. The same rules, however, won't apply if you aren't married. So think long term.
If you're buying a house with a person who you're not married to, ensure you have an exit strategy if things don't end up the way you wanted them to. Having an agreement in place is a good idea. It should cover the titles, repairs, liability, mortgage payments and the like; and yes, we do recommend you get a lawyer for this.
After all these considerations, if you've bought the house and don't want to deal with the hassle of property management, a property manager can make your life hassle-free. Get one today and shed the stress!