Things to Consider Before Purchasing Your First Home
There are many “firsts” in life that make it more exciting for us. You may forget everything, but not things like: first love, first day at school, and first job. Add to this list, your first home.
No matter whether you are thinking about moving out from your parents’ home or, considering getting your own home after lots of years of renting, buying a house for the first time is more than what you thought. Before you take the final decision you need to be prepared for everything.
When asked about why they want to have a home of their own, some youngsters aged between 24-30 years replied after years of working and renting that cost them almost $600 to $800 each month, they now have come to understand that the money spent behind house rent is a handsome sum and it would be feasible to rather investing in their own houses. After all, why would someone like to spend a fortune for something that they do not own?
Renting for sometimes might seem hassle free and easier; however, in the long-run it is not that convenient and affordable as you projected. If you build a simple list contrasting renting and buying, the picture should be clearer to you. And with that, you would realize that purchasing is the best option available in hand. So, let’s have a look at what’s to consider before buying a home for the first time.
Affordability
Buying a new house means an evaluation of your current financial position. Purchasing property involves different costs like down payment, moving expenses, closing costs, and new furniture. So ask yourself whether you can afford it.
Mortgage
Suppose you have got the required amount to make the purchase, but what is your current credit status? Nowadays being approved for a mortgage seems to be tougher than any time before. Lenders are not likely to give any kind of concession when it comes to your debts, liabilities, income, and assets. They want to make sure you don’t cross the debt-to-income ratio redline.
Stay Period
According to experts in the real estate sector, it would not be wise to buy a house if you don’t plan to live there for at least 5 years. The catch is, you can’t recover the expenses that you invested in the property.
Buying A Property Jointly
Oftentimes, investing in a property could be a win-win situation for both parties, for it has many advantages. When you combine your cash with someone else, buying a larger, better house could be easier to afford. It also distributes the financial burdens equally, giving you a much needed relief.
Worthiness
This is another crucial thing to consider: Are you getting what you are spending for? Will that remodeling of the structure and new furniture will give you what you are looking for?
Remember, all the money you are going to spend is an investment that needs to be relevant for you in the future. People today don’t buy houses anymore, they buy ‘homes’.