2 Questions To Ask Yourself Before Purchasing A Home
Buying a house is a major decision. It is important before you choose a house that you have thought through some things to make sure that it is the right house for you. Here are some things you should consider before buying a house.
Will This House Make You House Poor?
It is not uncommon for people to purchase a house and then become house poor. They put all of their money into their house so that they no longer have the funds to do other things they enjoy. There are a couple things you can do to avoid becoming house poor. The first is to not let the mortgage lender tell you how much you can afford on your home. You need to decide how much you want to spend on your mortgage payments each month. Then when you apply for the loan, even if they approve you for more, you stay within your budget. The mortgage lender doesn't know your personal budget and even though they say they will loan you more, you don't want all of your money to go toward your mortgage each month.
Another common mistake that people make is failing to take into account all of the extra expenses with a house. For instance, there is a good chance you will need to replace a heater, AC, lawn mower and a myriad of other things. If you don't factor this in, all of your money will go toward the upkeep of your new home.
Do You Like The Neighborhood?
Although the house is important, the neighborhood is just as vital. You need to be sure that you like the people you will be leaving around, that the schools are good and that your family can be happy here. Some people first choose a neighborhood and then find the house. This is not a bad choice. For most people, they can be happy in any kind of floor plan, but it will take just the right neighborhood to make them feel comfortable.
In order to determine if the neighborhood is right for you, you should visit the area on the weekend when people will be out and about. You could visit a neighborhood party, a church, or to a local school to meet some of the people. This will help you decide if the neighborhood is a right fit for you.
By asking yourself these questions you can be confident that you are choosing the right home. Talk to a local mortgage company for more information.