2 Questions You Should Ask Yourself Before You Buy A Home
Buying a home is a major life decision. It is very important that you take the time to make sure that you are getting exactly what you want and that you are happy with your choice. Consider advice from professionals who show homes. In order to find the right home for you there are a couple questions you should ask before buying a home.
Could I Stay In This House For 10 Years or Longer?
Many people buy a home with the mentality that they will turn around and sell it in a couple years. In some cases this line of thinking is fine, but you always need to consider the worst case scenario. What if the housing market crashes again? What if you are upside down on your home and you can't sell? What if interest rates skyrocket so the prices of the houses have to drop to get people to buy? There are many things that could happen, and although you shouldn't start out buying a house believing you are doomed, it is best to prepare for the worst and hope for the best. If you buy a house knowing that you could stay there longer if needed, than if things don't go as planned and you find yourself upside down and unable to sell, you are still okay.
Can I Afford This House, Or Will We Be House Poor?
One of the biggest mistakes that people make is buying a house that is outside of their budget. Recognize that the cost of the house is not the only thing you will be paying for. You will have insurance, taxes, maintenance and so much more. If you buy in at a price that is high for your budget you might end up never being able to make ends meet. Don't buy a house with a job raise in mind. Until you actually have the money in your pocket, it is not yours to spend.
In order to avoid problems you should talk to a bank about what the right range is for you. Most lenders recommend that you don't exceed 28% of your income. That includes the mortgage, taxes, and insurance. That means that your monthly payment on the home shouldn't exceed about a fourth of what you actually bring home each month.
By asking yourself these questions early on in the buying process you will be able to protect yourself and make sure that you are getting the house that is right for you.