Regardless of the size or the style of the home you are buying, taking the plunge into homeownership is a huge financial decision. This is why it is important to make sure that what you are buying or settling in to is the right one for you. You can do this by evaluating the property as a whole or asking several questions about its affordability and functionality.
Here is a list of questions you need to answer before deciding to put an offer:
Are you okay with the house’s location?
Location is the one thing you cannot change about a house. You need to make sure that you’re fine with where the property is located, especially in terms of its accessibility to transportation and proximity to certain establishments like grocery stores, shopping malls, schools, and hospitals.
It is also important to keep in mind that location will affect the future value of the house and your daily life. When the house is located in a good neighborhood, it is likely that you can sell it faster at an attractive price if you decide to so in the future.
Is the house in your budget?
To have an idea of how much house you can afford, it is best to get a pre-approval from a reliable lender. Mortgage companies in St. George note that you can set amount as a guide when deciding how much money to spend. It is advisable to go below the maximum purchase price you can afford to avoid being house poor and financial hurdles in the future.
You might also want to use a mortgage calculator to determine your monthly payments based on a number of factors such as the amount and term of your loan, the home value, down payment, and interest rate. You also need to think about the taxes, HOA fees, and closing costs.
Does it have enough space or rooms?
While you can always make additions or extensions later, adding rooms or bathrooms can be challenging and costly. This is why it only makes more sense to look for a house that has the right number of bedrooms and bathrooms from the beginning.
You should also take into account your or your family’s plans and goals in the future. If you’re thinking of growing your family in the future, you need to make sure that the house you want to buy can accommodate your needs.
Does the house need work?
If you’re buying a house that needs renovation (in order to be livable), you have to assess how much work it needs. In many cases, if you’re not equipped to handle the task at hand or if a major renovation is required, it is best to find another house that can match all your needs and some of your wants.
Sure, the house that needs some work may cost less, but you also have to take note of the potential cost of repairs and renovation. For serious and big issues like foundation problems, leaky roofs, and old electrical systems, you may need to spend significant time and money in updating or fixing these things.
It is best to be prepared when looking for a house. Working with a reliable mortgage company and real estate agent can help you make an informed decision.