The story below is a preview from our September/October 2018 issue. For the full story Subscribe today, view our FREE interactive digital edition or download our FREE iOS app!
The adventures of house-hunting often yield surprising discoveries. These tips are a good start to alleviating a few of those moments.
House hunting has both a practical and emotional component to it. Some things, like finances, must be taken into consideration, while others are all about how a house feels to you and whether you can envision it as a place to call home.
Practical considerations include the financial aspects of home-buying. How much are you going to spend on your home purchase? How much can you afford to put down and pay monthly? A down payment of 20 percent is recommended to avoid private mortgage insurance and to keep your monthly payments lower, but isn’t required. Put together a budget ahead of time to determine what percentage of your monthly expenses will be dedicated to paying your mortgage.
What can you qualify to buy? Get pre-qualified to find out. This can also help elevate your status with a seller by showing you have taken the first steps to find funding.
“At Hamilton Group Funding, we recommend beginning the pre-approval process approximately 30 days before you start your home search. First, speak with a qualified lender who will ask questions to help determine your goals and recommend the mortgage loan program that best suits your needs,” says Getra Hanes, Director of Business Development at Hamilton Group Funding.
She notes that there is a difference between pre-approval and pre-qualification. The term pre-qualified does not guarantee a loan. Obtaining a pre-approval letter can be useful during the negotiation process and may help expedite the closing of a loan.
Where do you want to live? Think about the type of neighborhood, the school system and your work commute. Location is one thing that cannot be changed, so be sure to choose a home in an area that appeals to you and will meet your needs for years to come. Take into account the value of other homes relative to the purchase price of the house you are considering and what is likely to happen in the market over the next several years.
What are the must-haves versus nice-to-haves? How many bedrooms and bathrooms do you need? Floor layout is harder to change so this is an area to ensure will work for you and your family long-term. Think about the layout and flow of the rooms and how you plan to use each room.
Are you willing to fix up a house or upgrade over time? Or do you want one that needs no updates? You might get more house for your money if you are willing to add things like granite countertops and updated bathrooms instead of having those already done.
Attend a home-buying class offered by a knowledgeable realtor. Find a realtor with whom you feel comfortable sharing the vision of your dream home–one who asks questions as well as answers any questions you might have about home-buying. A knowledgeable realtor lends their expertise to help you find a home that meets your needs. They may know things about specific neighborhoods that you wouldn’t find out until after you moved into the area.
Check everything out during home visits. If you can check your must-haves off and most of your nice-to-haves, consider making an offer. Be sure to get an inspection once you decide to purchase.
When house-hunting, pay attention to how a house feels to you. Is it someplace you feel comfortable? Can you imagine your family living there? When you walk in, does it feel like you are home?
Purchasing a house is an important decision that involves heart and head. By knowing what you want and can afford, you can keep an eye out for someplace you would love to call home.
… for more from our September/October 2018 issue, Subscribe today, view our FREE interactive digital edition or download our FREE iOS app!
