Buying a home is arguably one of, if not the most important decision one will have to make in their lifetime. With all of the stress and responsibility that comes with home ownership, it’s important to be as sure as possible about making your decision when the time comes. We have put together our four most important questions to ask yourself before you make this important decision.
Am I Willing to Live in This Home for More Than Five Years?
It is important that you ensure you want to live in your house for at least five years. Make sure the home’s location meets your needs and is a place you enjoy being. We say five years because if you leave your home sooner, there is a chance you will take a financial hit, especially with closing costs. The longer you stay in your house, the more money you will make when you go to sell.
Can I Afford a 20% Down Payment?
A 20% down payment is often not required, however it is considered to be ideal, especially in today’s market. Putting down 20% will show lenders that you are in a position to afford the home. The more you put down also makes your offer more competitive, giving you an edge over others putting in offers on the house.
Do I Need to Buy a House Right Now?
Everyone is in different situations when looking for a home, which means some may be in more of a position to buy than others. Before making such a big commitment, it is important to make sure you actually need to buy a house. Make sure you do not settle on a house you are not sure you love, and do not buy a house that will be a financial burden for you. The right house comes for everyone at the right time, so make sure the house is the one you need.
How Much Work Does the House Need?
Be cautious before taking on a house with too many projects you can handle, and especially take your budget into consideration. Remodeling costs can be extremely high, and adding them onto the prices that come with purchasing a new home can create costs you are unable to afford. You want to make sure you uncover all of the work the house may need before you commit to it, as uncovering surprises after you purchase will cause stress and much more money.
Purchasing a home is stressful, but an exciting time. Before getting carried away in the process of homebuying, make sure it is the smartest decision for you at the moment. That way, you do not have to put yourself at financial risk or make a purchase you did not actually need to make. Next time you are thinking about buying a home, remember to ask yourself these questions!
Read the full article at forbes.com