When it’s time to buy a new home, there are a few questions you need to think about before you start your search. Most questions involve how much space do you really need and can you afford the size of home you want to buy. These two questions will often be the determining factors when it comes to choosing a home. Once you’ve given a lot of thought to what you are able to buy, it will allow you to see the potential you may have overlooked.
How Much Can You Afford?
Knowing what you can reasonably afford is the most important step in house hunting. Look at your budget and what you are paying now for housing. You will want to go over your credit reports as well as what your potential income will be in the future. Is the economy stable? How much money do you have saved for a down payment? All these questions will play a role in determining how much house you will be able to afford. This includes payments, utilities, and insurance costs.
Look at the Next Five Years
Look at your next five years. Is your family going to be growing or are your kids ready to leave the nest? Are you healthy enough to maintain a larger home or are you ready to consider downsizing? A lot can happen in five years. Knowing what your future plans are for the next five and ten years will allow you to be more financially responsible. You might be able to buy what you need now, but if your future is set to change, you may want to buy more in line with your future needs.
Is This Your Forever Home?
One important consideration is whether or not this will be the home you want to live in for the rest of your life. Some people choose a large home to accommodate their families and when the kids leave they opt to move into a smaller home. Spending a little more may work to your advantage. It may hurt you financially though, if you plan on keeping the home longer than you need to. Look for a forever home where you can utilize as much space as you need without wasting any.
Can the Home Grow With You?
Couples who are just starting out will often choose to buy a home they can grow into. Does a home have the potential to be renovated with new spaces added to it? Having a home with the potential for growth is like building for the future. It becomes an investment that will grow along with your family. When it’s time to sell, you will be able to reclaim some of the money and hard work you put into turning the house into a home.
Is the Space What You Are Looking For?
When you look for a house, it’s important to know what kind of space you are looking for. A full basement, multiple bedrooms, dining areas, dens, and patios are all forms of space that many people look for but don’t always need. Know what space you really need and buy accordingly.
Buying a home doesn’t have to be overwhelming. Using a mortgage calculator tool will help you determine just how much you can afford to spend on a new home. It can go a long way to give you the peace of mind you deserve when it comes to staying within your budget.
