Buying a home will be one of the biggest investments you will ever make, and it will have a lot of impact on your finances for many years to come. This is why it is a good idea to invest time and effort in the process to avoid making mistakes that you might end up regretting later. There is a lot that goes into the process of buying a home, and you will have to work with many people in the process. It is a good idea to have a rough idea of what is going on. Below are some important things to remember before buying a home.
Find the right realtor
The realtor you choose such as Live love at home – Philadelphia, will have a big impact on the home you buy and the pricing you get it for. This is why it is important to choose a realtor who will be able to help you with the process. There are some people who usually hesitate when it comes to hiring a realtor because they get a cut of the sales price, and this for them will result in higher costs. It is good to remember that the seller is the one paying the commission and not the seller. You should always remember that the agent representing the seller is not protecting your interest, and they can easily pocket commission from both sides. This means you are not saving money. Just get yourself a realtor who will be protecting your interest and guiding you through the process.
Buying a home involves a contract
There will be many papers to sign when buying a house. These papers are actually contracts, though the look like “standard” home buying contracts that don’t have any room to negotiate. This is not the case. A contract is meant to be negotiated. There is no pressure to sign a standard agreement. If you want to have more time for inspection, or you are making the purchase subject to your mortgage approval, you can have that included in the deal. This is where a realtor will be able to help you. Just tell them your concerns, and they will be able to help you out.
Do not buy for the life that you currently have
Buying a house is a very big financial commitment, and it will be one of if not the biggest you are going to make in your life. Before you make the decision to buy your dream house, it is a good idea to think about your long-term plans. Are you planning on getting married? Having children? Staying in the same job? Depending on the property market and terms of your mortgage, then you might not be able to pay down the equity of your home for about five to seven years; if you are not sure you will live in the house for a few years, then it might be time to look for other options.
Think about the commitment
This is not only about the mortgage you are going to get. When you are married, state laws will determine how your assets are treated, and how they are going to be distributed in the event of a divorce. These rules will not necessarily apply to a single person. This makes it important to think about the long term. When you decide to buy a home with your partner who isn’t your spouse, make sure there is an exit plan if things don’t go the way you wanted. Having an agreement in place will make the process much easier for both parties, and this will also involve getting a lawyer.
Look beyond paint
There might be that one room in your dream house that you are thinking about making changes to. You need to remember that it is not expensive to fix cosmetic issues, but baths and kitchen will be a little bit on the expensive side. People tend to spend a lot of time focusing on the cost of cabinets, counters, and appliances, but often times they don’t factor in the labor which can easily double or even triple the cost.
This does not mean giving up on your house because it needs some work to be done, but these costs should be factored in when you are determining whether you can afford it.
Buy a house you can afford
This can be a little different from the pricing that the mortgage company thinks you can afford. It is hard for the company to know the exact amount you can afford, and it will be up to you to make that estimate. Your finances can look good on paper, but not actually the case in your day to day life. Your income and expenses will bound to change. There is no need to go for an expensive house while you are not sure if you will be making the same amount for two or three years to come. Many experts will advise you to ensure your mortgage payment does not exceed a third of your income. A mortgage broker will be able to help you in understanding what is in play.
Do not fixate on the purchase price
The purchase price is one of the aspects of owning a house. It is important to consider all the costs that are associated with the home. This will include insurance costs, real estate taxes, and homeowner association fees. These costs can quickly add up. Home improvement is not the only thing that will require you to spend, there are also maintenance costs. Try finding the costs of maintenance, and this will include things such as fancy heating and cooling systems, swimming pools, etc.
Consider your student loan debt
Lending laws tightened after the housing crisis. Today, student debt is treated as a real debt. It is important to talk to an expert to see how your student debt is going to affect you when it comes to buying a home. Buying a home is a big deal, and it is important to ensure you know what it means for you and your family.