Buying your first house is one of the biggest life purchases, so you want to get it right. We've compiled a list of questions you should ask yourself before buying your first property.
-
Are You Ready?
Carefully consider your financial situation. Ask yourself if buying a house is worth the price; if you change apartments frequently, it probably isn't. Is your financial situation stable enough to pay off a mortgage? Do you have any savings in case of emergencies such as job loss?
Think about your personal situation as well. Do you want to buy a house with another person? Sharing the costs of property purchase has its advantages, but take into account that you'll be living with this person for at least a couple of years.
-
What is Your Budget?
It's crucial to sort out your budget at the beginning to know what houses you can afford. Don't spend your last penny on buying the house; think of monthly mortgage payments, property taxes, insurance, moving costs, maintenance expenses, new furniture, and any renovations the house may need. Put aside some money for emergencies. If you're relying on another person to cover part of the costs, be sure you know his or her financial situation.
-
How Will Your Life Change in Five Years?
You must live in a house at least five years to make it a worthwhile investment, so you should consider your future living arrangements. Do you have a partner or do you want to have one at some point in the future? Are you planning to have children? How many? What about pets? The answers to these questions will determine how much space you need.
-
What Are Your Priorities?
Chances are you will need to compromise on some of your requirements. Make a list of priorities to save you regret in case you are forced to make a quick decision. Do you prefer a nicer neighborhood or more space in the house? What about the distance from work, school, restaurants, and nightlife? Can you compromise on comfort if the price is lower?
-
What is Your Perfect Neighborhood?
The safety of the neighborhood is an obvious aspect to consider, as well as the distance to local amenities, such as shops, restaurants, and gas stations. Will you or your children need to commute? If so, is public transportation satisfying? Is the neighborhood noisy, and if so, does it bother you? Remember that you may not get honest answers from the owner - have a chat with the neighbors.
-
Have You Inspected the House?
Sometimes a house may look fine at first glance. However, you don't want to get stuck with a house that requires extensive maintenance work. Inspect the house thoroughly both on the inside and outside. Don't' rely on the owner's words; rather, insist on checking things yourself - this may save you a lot of trouble later on.
-
Do You Prefer a Top-Notch House or a Fixer-Upper?
Both options have their advantages and disadvantages. Although perfect houses cost more, you can immediately see what you're getting and you'll avoid the hassle of renovations.
Fixer-uppers are cheaper, but you need to factor in the renovation budget. If you encounter some nasty surprises in the process, you may end up paying more than for a fully equipped house. On the other hand, fixer-uppers are the perfect choice for those who like to design interiors on their own.
-
Have You Seen Enough Houses to Decide?
Don't rush buying a house; it's a big commitment. Take your time to see enough options; even if you fall in love with the first property you see, you may find something better. Once you've bought a house, you're stuck with it for at least a couple of years.
-
Will You Get a Mortgage?
Getting a mortgage is more difficult than it used to be. Lenders must look into the documentation of your income, debts, assets, and liabilities, so make sure that you've got your paperwork in order. Look into the requirements you need to meet. Are you sure your earnings are high enough? Have you settled any eventual debts? If you have questions about qualifying, we can help walk you through it!
-
Have You Consulted Specialists About the House?
Consult a professional real estate agent and make sure that he or she understands what kind of house you want - this will save you the trouble of checking out properties that don't interest you. Get a professional surveyor to assess the actual state of the house. It is an additional cost, but it may save you thousands of dollars later on if something is wrong with the house.
