3 Questions To Ask Yourself Before Buying A House

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Buying a house can be an exciting time of life. Many people look through houses trying to find the perfect home for them. Here are a couple things that you should consider before you choose a home.

Are You Buying Within Your Current Budget?

Some people are not careful about budgeting when shopping for a house. For example, you may have been promised a promotion at work, or an inheritance from a family member, and shop for a house with those numbers in mind. Although those things may be coming to you in the near future, you cannot be sure. It is very dangerous to buy a house based on what you think your income or assets will be. Instead, you should only shop for a home that is in your current budget. For example, some mortgage lenders will loan up to 28% of your income for housing. However, it may be better to buy somewhere less than 28% of your current income. Then if things get better, great! But if they don't improve quickly, you aren't house poor for months or years after the purchase.

Do You Recognize All The Costs Associated With The House?

So assume that you found a house and it is in your budget. You have enough money to afford the mortgage payment each month. However, there are always extra costs associated with buying a house. Is the yard large and expensive to maintain? Is there a pool that will need upkeep? Does the house need repairs, new appliances, updating, and so forth? All of these questions should be considered before you purchase the house. If you can barely make the mortgage payment, you may not have enough money to keep up with the house. This is why it is so important that you factor in the cost of the upkeep before you purchase the house, knowing that older houses will have more expensive upkeep than a newer house. This will really let you know if you can afford the house, not just the mortgage payments.

Could You Live Here For The Long Haul?

You may be buying a home with the idea that you will upgrade in a couple years as your family grows or as your circumstances change. Although this may be the ideal plan, it is important to prepare for the worst. What if the housing market crashes again? What if interest rates skyrocket? What if you lose a job? All of these questions should be considered before buying a home, since you need to know that if everything goes wrong you could stay in this house for the long haul. If it is not a place that you love, or that you don't want to be in the future, then you should consider somewhere else.

These are just a couple things you should think about before buying a home. For more information, contact Conrad Bitangcol.

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