Whether you’re planning your nuptials or you just got married, looking for a home isn’t a decision to be taken lightly.
Are You Ready to Buy a House?
Before buying a house, the very first thing you should discuss is whether renting or buying is the right choice for you. You might realize that it costs more to buy than rent, but if you feel better about building equity with the monthly payments rather than just giving money to a landlord, it’s probably the better option.
Here warns an article published at Greenresidential.com, while stating that the cost of rent for a similar property could be less than a mortgage payment. Additionally, don’t forget that you’re now in charge of all the landscaping, maintenance, and utilities. You can’t call the landlord when your roof leaks or you find a mouse in the basement. If you cringe at this potential challenge, it might not be the right choice for you.
Finally, think about the location. If you live in a large city, and you want to live downtown, you likely can’t find a home in a reasonable price range. Renting is the only option, so buying a house will have to wait.
3 Things to Consider When Buying a Home
If you’ve carefully considered your options, and you’re certain that home ownership is the right choice for you, here are some things to remember.
1. Choosing Just the Right Size
You don’t want a home that’s too large for you to handle. If you’re both working full-time jobs, a home on a half-acre lot with lots of grass and landscaping may be too large. It can also be expensive to heat and cool a large house, wasting energy on rooms that you’re not using.
You should think about your future as well. For example, if you’re planning on starting a family right away (or you already have one), think about having enough space to accommodate growth.
However, there’s nothing wrong with buying a starter home, knowing that as your family changes 5 or 10 years from now, you can always sell it and upgrade to something bigger. Overall, if you’ve rented your entire life, it might be better to start out small than to buy more house than you can handle.
2. Qualifying for the Mortgage
The mortgage qualification process is very simple at first. You’ll get pre-approved for a loan so you know how much of a house you can buy. After answering some basic questions about your income and employment, your bank will pull your credit history and quote you a maximum mortgage price, which you can use to guide your search. (If you have bad credit, you may run into some hurdles, so you’ll want to do further research.)
“Before calling a realtor, get this estimation, and discuss your max budget with your partner,” says Barbara Bean-Mellinger of The Nest.
Just because you’re quoted a maximum price doesn’t mean you need to spend that much. As a general rule, you should aim to spend less than 30 percent of your monthly income on a mortgage payment.
3. Saving for Unexpected Expenses
From the moment you begin your home search to the moment you close, think about increasing your savings for unexpected expenses. As mentioned, you can no longer call the landlord every time something breaks. You’ll need money to cover it yourself.
You’ll also want money to make updates. If you want to make a profit off your home when you sell it, look for small updates that will add value, such as replacing an old roof, getting new windows, remodeling a kitchen or bathroom, or adding an extra bedroom.
Most financial experts recommend that you save about 10 percent of the home price for unexpected expenses. So, if you’re buying a home that’s $300,000, have at least $3,000 in savings for unexpected expenses.
Homeownership can be a dream come true when you’re starting your life, but you want to go into it the smart way. Do your homework to avoid a money pit and make sure you’re financially and emotionally ready to buy a home to ensure happiness and less stress at the beginning of your marriage.
Article Submitted By Community Writer