Real estate can be a great investment, but not until you are physically, emotionally, and financially ready for this long-term commitment. Therefore, a proper understanding of the buying and maintaining process of homeownership is key. Thankfully, help is available if you are in the early stages of buying a home. Here are a few essential tips to consider before making a home purchase.
Plan to Stay a While
To truly maximize your real estate investment, you want to spend some time in the home after purchasing it. This time will ensure equity builds up, increasing how much profit you will be able to make if and when you decide to sell. If there is any chance you may want to move for work or other reasons within a short period of time, it may not be the best time to buy.
On the other hand, if you do want to "put down roots" and settle down for a good amount of time, buying a house can be a great option. The purchase will be financially worthwhile, especially since paying rent will not be investing your money wisely.
Know What You Can Afford
One of the biggest mistakes you can make when buying a home is starting the home search process before knowing what you can realistically afford. Without having an idea of what you can afford, you may be setting yourself up for disappointment and financial distress.
Before searching for a home, contact a lender or mortgage broker to begin the prequalification process. The lender will look at your income, bills, and credit to determine how much of a home you can afford to purchase.
Make sure to keep in mind "other expenses," such as insurance, retirement, and entertainment, when considering a specific home amount since the lender will most likely not factor them in during the qualification process.
Think of Future Needs
You should also avoid homes that may suit today's needs only, meaning you really need to consider the future when purchasing a home.
You may not have a family now, but you may decide to start one in the future, so having an extra bedroom can be beneficial. This extra bedroom can not only be a nursery as you add to your family, but it can also serve as a guest room or office.
An extra bathroom may not seem necessary initially. However, if you do decide to sell in the future, an extra bathroom will help interest more buyers.
For more tips on buying single family homes, work with a local real estate agent.
Share21 January 2020
When you decide you want to sell your home or buy a new one, you will need to hire a real estate agent to represent you. A good agent will do most of the legwork as far pricing the home, creating a listing, and advertising the home goes. However, you will need to work beside them and make decisions along the way. We've created this website to give the average home seller or buyer a little more insight into the world of real estate. Learn how to find a good agent, help them do a better job for you, and navigate the sale process in the articles presented on our pages.