6 Questions to Ask Yourself When Buying a Home, So You Can Make The Best Investment Possible
In today's market, we hear so much about how low-interest rates are. But does this mean it's a good time for EVERYONE to buy?
The short answer is NO, but it seems like that is what people are being told.
If you’re looking to buy a home, here are some key questions to ask yourself so that you can make the BEST decision possible and don’t end up LOSING money.
What Is The Maximum Amount your Lender Says You Can Afford?
Yes, you can use an online calculator to get an estimate, in fact here is one. But I repeat ESTIMATE! My advice after seeing clients be taken for a ride on Disney's Rock 'n' Roller Coaster is to find a GOOD Loan Officer. Someone you can trust and is going to work past 9-5 pm to make sure you are fully educated and prepared. If you're in MA, RI, ME, or NH, here is someone I trust and whom I know will represent my clients in the best way possible and get the job done.
Especially in a market like this, homes are selling faster than ever, for more money and with multiple offers. Your Loan Officer needs to be prepared to provide all necessary documents faster than ever because if they don't, your dream home could be gone tomorrow.
What Are Schools In The Area Like?
This is one of the KEY factors that have a BIG impact on home valuation. Even if you don't have kids or don't "plan" on having any, this will play a major factor in sustaining and even growing the value of your home.
Are There Any HOA Fees And If So What Are They?
Popular in most condominiums and townhouses, this is something that can play a BIG factor in choosing a home. Check with your agent to see how much the fee is, what does it cover, and if there are any plans for future improvements that could warrant an increase in this fee.
How Much Are Closing Costs?
Made up of taxes, insurance, attorney fees, origination fees, and some more items, closing costs are often something that is overlooked when buying a home. These costs are usually anywhere from 3-5%. Here is a calculator to get an estimate.
You should also be aware of what these costs are prior to closing on a home.
Are There Any Renovations Needed?
Make sure you are aware of any renovations that need to be made to the home. Common items to check are appliances, roofs, systems, etc. These are things that should be taken into account before buying and need to be properly planned/budgeted for. Here is a great article that talks ALL about home renovation and the cost associated with each.
What Are The Property Taxes Like?
Another item that NEEDS to be considered when buying a home. This NEEDS to properly budgeted for when buying a home. Here is a calculator to get an estimate.