BUYING A HOME

Thinking about purchasing a home and the process feels like an upcoming root canal?  When buying a home there are many things to consider, especially if this is your first home.

First of all, what does buying a home mean to you?  Does it mean providing 4 walls to offer shelter for you and your family?  Are you trying to keep up with your friends or family?  Is it a lifelong goal?  There are many reasons people purchase.  All in all, a home purchase provides shelter and offers a sense of security for most.

Whether you purchase a 1200 sqft home or a 5000 sqft home the feeling remains the same, so always think about what you can afford.

Affordability

1.     What are you comfortable paying each month?

 

2.     Have you contacted the utility company to find out what the average 12 month utility bill runs?

 

3.     Do you have 1, 2 or 3 air conditioners?

 

4.     Have you completed a home inspection to check for future repairs?

 

5.     Have you researched the crime stats in the area?

 

6.     Do you have kids?  Have you thought about schools and resources in the area?

 

7.     What is your access to freeways or the main roads to get to and from work?

 

8.     Where is the nearest hospital?

 

9.     Do you have a stable job?

 

10.  Will this be a short-term home or the last home purchase you plan to have?

 

11.  Do you have student loans and what will those payments be?

 

12.  Are you self-employed?
There are so many variables to think about when buying, but when it feels right and your cards line up, it usually works out!  The main thing is the ability to afford your monthly mortgage payment in addition to all your current debt.

Have you heard of the phrase “mortgage poor”?  Well, there is a lot wrapped around those two words.  Sometimes bigger isn’t better when all you can do is work, pay your mortgage, then go home.  Not having enough residual income could negatively impact your quality of life.  It’s best to find a home that serves the purpose of providing shelter and the ability to travel, have a social life, and save for rainy days.  Most of all, everyone will need a backup fund for the unexpected. As we all know, the AC will go out in the middle of summer if it goes out!  The water heater will take a dive in the middle of winter.  Residual income is key to owning a home and planning for the future.

If you are thinking about purchasing now or a year from now, always consider the above questions.  With over 15 years in the mortgage industry, I’ve seen it all and feel free to ask me any question as I know from personal experience that there is nothing more gratifying than owning your own home.

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