If you are considering homeownership, preparation is key to making the process as easy as possible and achieving the best outcome; purchasing a home that makes sense for you. As you consider the realities of buying a home ask yourself these questions:
1. Can I afford it?
The most obvious expenses are the down payment and the mortgage payments for a home. But you also need to factor in closing costs (lawyers, home inspectors, title insurance, appraisal fees, and more). These closing costs can be up to 4% of the purchase price of your home. You should also consider ongoing costs such as property taxes, upkeep and maintenance, home insurance, and condo or HOA fees. A detailed look at the true cost of homeownership will help you determine if or how much you can afford to spend.
2. What kind of home makes sense for my lifestyle?
If you are looking to start a family in the next few years or you have a pet who needs outdoor space, maybe a single-family home is the right choice for you. If you lead a busy, active life and want a maintenance-free residence, condo living could be the perfect option. If you have worked hard to achieve certain financial goals and you are ready to indulge in the home of your dreams, the purchase of a luxury or estate home might be the best next step.
3. How long do I want to own my home?
Life can throw us curveballs, but as you consider purchasing a home, ask yourself how long you plan to stay in the home you choose. If you are looking for your forever home your choices may be different than if you are purchasing a starter home with the goal of moving up the real estate ladder within a few years. Could your job take you to another city in the near future? Are you planning to retire and travel in the next 2-5 years? Is your ultimate goal to move out of the city and try acreage living? Knowing the length of time you plan to own your home will help you make the best purchase decision and protect your investment as life goes on.
