Questions to ask yourself before buying a new home

Information, questions you should ask, and advice on purchasing a new home.

Am I financially stable enough to purchase a home? Just because you’ve been able to make rental payments for a long period of time doesn’t mean a lender will extend you a mortgage. How is your credit history? Are there negative marks on your credit that can be fixed and put you into a better position to buy? Is your employment history stable? There are many facets to the qualifying process, and looking at them ahead of time will help you better prepare yourself.

Do you have enough money in the bank for a down payment and closing costs? While there are various down payment assistance programs it’s sometimes hard to qualify. Having a sizable down can also help you qualify for a mortgage simply because you show potential lenders your responsibility towards your personal finances.

Will my financial situation change dramatically within the next year or two? If so, you may want to consider waiting if the change will improve your monthly income. The more income you have the more you’ll qualify for. Waiting may be the best idea for you if any boost is in your financial forecast.

Once you’ve paid the down payment and closing costs, will you have enough money to pay for incidental repairs and other things pertaining to home ownership? If your hot water heater breaks will you have enough money to fix or replace it? Likewise, if you discover you just don’t like the carpet color as much as you initially thought now that you’ve moved your furniture in will you have the funds available to replace it? Without a landlord to call when things arise, financially what position are you in to cover home-related costs?

Where do I want to live? Educate yourself to the crime rate, school districts and overall economy in the areas of town in which you’d want to live. Even if you don’t have children, if you plan later on down the road to become a parent it’s important to take this into consideration ahead of time.

How important is my home location to my workplace? Consider how close you’ll want to live to your job. The type of car you drive, your ability to return home in the event of an emergency and your ability to arrive at work on time are important requirements you’ll need to establish before you begin hunting.

How big of a home will you need? Don’t purchase a home you’ll quickly outgrow. Take into account any factors that may change your needs in respect to housing. Are you planning for children? Will you want to run a business out of your home resulting in the need for a home office? Do you like to entertain? If so, plan on adequate square footage to accommodate your needs. If you’re not sure of square footage, you’ll be able to gauge square footage during your house hunting. Use the homes you’ll view as guidelines and examples of different house sizes and purchase accordingly.

Do you want a fixer-upper or a brand new home? If you’re a handy person you may be able to get more home for your money if you purchase one that will require a little elbow grease to bring it up to snuff. On the other hand, if you’re no good with tools and tend to hurt yourself more than you repair anything, you’d be better suited to search for a new home or one that won’t require anything from you other than financing. Don’t ever purchase a home with the intention of fixing it up unless you are 100% dedicated in doing so. If you don’t get around to the repairs you may end up loosing money in the end if someone else has to fix them or you have to sell.

Will a moving company be the best way to go or will you enlist the help of your favorite truck owning friends? In some cases, if the move is a relatively short one or long one for that matter it’s better, not to mention easier, if you hire a mover. If you’re dead set against someone potentially manhandling your things than opt to do the moving yourself. But for long distance moves a professional may be your best bet. Your truck owning friends will thank you for it.

And finally, are you buying a home for the right reasons. Short of marriage and parenting, there is no bigger commitment than buying a house. Make sure your decision to purchase is based on rock solid reasons that signify you’ll be better off owning than renting. If you’re dating someone who wants to purchase a home with you I strongly urge you resist until you’re sure the relationship will last. If you’re purchasing a home because you think it will move your relationship to the next level, you’re kidding yourself and the person you’re dating. The relationship should move to the next level on its’ own. Material possessions shouldn’t ever be a deciding factor in staying in a relationship. Likewise, the problems you’ll have owning property with someone you’re not married to can be catastrophic if you ever break up. Above all, your approach into the world of home ownership should be a carefully planned process in which you’re totally comfortable with every aspect of it from beginning to end.