I Want to Buy a New Home: What Should I Know Ahead of Time?
It can be a very exciting time in your life when you’re ready to buy a new home.
Maybe you want to stop paying rent or upgrade into your dream house. No matter the reason, purchasing real estate is serious business.
If you make a small mistake, your property value might drop by 5% to 24%, just because you chose a home close to an unwanted location.
Thankfully, it is simple to avoid most serious mistakes by following a few important guidelines.
Investigate the Neighborhood
Don’t just trust the internet or a random friend’s advice blindly when it comes to your new neighborhood.
The first thing you need to do in order to buy a new home, is visit the place and check out the general area.
Important things you should look out for include:
- Unwanted locations like noisy streets, strip clubs, bars and city dumps.
- The area’s street lighting at night. Look out for the number of street lights, dark corners or dimly lit alleys.
- Proximity to schools, hospitals, and shops.
- The character of your future neighbors. Are they family people or not, do they have pets and do they keep their houses in good condition?
Even if the potential new house seems amazing, if the neighborhood is dodgy your home will lose value and it won’t be worth the investment. Finding the right real estate agent can be essential in helping you find a good neighborhood.
Prepare Your Budget to Buy a New Home
It might seem like common sense, but one of the most important ways to prepare in order to buy a new home is to calculate your new budget. How much money will you be able to spend on taxes, mortgage, utilities, and repairs?
You need to sit down and see exactly how much money you can afford to spend on a monthly basis. Even if your current job and savings are great, you should also account for financially difficult times.
If you already own a property you might want to sell it for a decent amount to help fund the move.
The first thing you need to do before you go house hunting is getting your mortgage pre-approved. With that you can know exactly how much you can spend, so you won’t waste time checking out homes that are too expensive.
Decide on Important Features
Maybe you absolutely want plenty of natural light, or you want to buy a new home that has a big bathroom. No matter what your personal preferences are, you need to make a list and write down all the features you want your new home to have.
You need to find a home that has the right size bathroom, kitchen, and windows for your ideal lifestyle.
If your family is large, you also need to take overall space into account. It is a good idea to place important features on the top of your list and less vital ones at the bottom.
Just remember, deciding to buy a home is a very important decision, so take your time and choose wisely.