Buying your first home is an exciting time in any family’s life. However, it can be intimidating to know where to start or know what questions to ask. Here are the top 5 questions we think every first-time homebuyer should ask themselves before buying a home.
Do I Have A Financial Plan?
Before you buy your home, make sure that you have a financial plan. A sturdy financial plan can help you account for potential roadblocks before they even happen. If you are ditching your landlord and buying your first home, first ask yourself:
- What is my monthly budget for housing expenses?
- Do we have enough savings to cover the mortgage if we lost our jobs?
- Will my income increase in the next five years?
- Do I already have a large amount of debt?
Answering these questions ahead of time can uncover any items that need to be corrected before it’s too late.
Do I Want To Build Roots In My Community?
Homeownership is perfect for those families who plan to be in their community long-term. Since owning a home is an investment, it takes time to see a return on your money. Due to the financial and emotional impact selling your home can take, it makes sense to stay in your area for a minimum of 5 years.
During those five years, you will develop deep roots in your community. Homeownership will help to nurture:
- Stable schooling for your children
- Financial stability
- Home equity growth
Can I Afford The Home If One Of Us Was To Lose Our Jobs?
While it isn’t a happy thought, job loss is always possible. If the economy were to take a turn and you or your spouse lost a job, could you maintain the mortgage payment? Asking yourself ahead of time allows you to buy a home well within your means and to safeguard your family’s home against any possibility.
Am I Looking For A “Fixer-Upper”?
Currently, as of 2021, the real estate market is experiencing an extreme lack of inventory. Most homes are seeing multiple offers that are well above the asking price. This is known as a Seller’s Market because the lack of inventory erodes any negotiating power the buyers may have.
This means that if you search for your first home and don’t have a cash offer, you may have to adjust your expectations. If you are willing to purchase a home that needs a little extra care and attention, you could avoid multiple offer situations.
Getting on the same page as your spouse about what you are willing to buy before you start your home search will set you up to be successful.
What Does The Perfect Home Mean To Me?
Every family is different, and the “perfect” home can vary depending on their own needs and wants. Discuss with your family and agent what the perfect home means to you. Things to think about before you start your home search will include:
- Number of bathrooms
- Number of bedrooms
- Lot size
- Natural lighting
- School zones
- Distance from work
- Amount of renovation needed
Before starting your home search, click here and begin the pre-approval process with one of our loan officers today. They will help you build a plan to get you the financing you need to buy your dream home.