Are you ready to buy your future home?

Are you ready to buy your future home? The following brief questions will help you achieve your home purchase goal.

What type of home are you looking for?

We own multiple condos and multi family homes. However, the type of home you are interested in can vary greatly. From large single family homes with a lot of land and no neighbors to studio apartments in metropolitan cities options can sometimes seem overwhelming.

Certain areas only have certain types of homes. For example, many of the single family homes where we live are bi-level. I personally find those homes to be very unattractive. However, if I was to purchase a single family that is what I would have to purchase.

What is your budget?

How much house can you afford? We know rent can be more expensive then owing your own home. However, with home-ownership you have the added cost of taxes, insurance and utilities. Having just enough to pay your mortgage would leave you house poor. Stay below your budget to avoid making a great situation of home-ownership a nightmare.

What state, city or neighborhood are you interested in living in?

Are you looking for great schools? Do you care for amazing nightlife, and great restaurants? Some places have a little of everything. Few places have it all.

Your budget might eliminate certain zip codes. Don’t allow that to deter you and your home buying goal. Furthermore, your first home doesn’t have to be your forever home or your forever neighborhood, state or even forever city. We lived overseas for 13 years and know many which have moved between countries, states and cities for work and for better opportunities.

Do you have your down payment and closing costs?

How are your finances? You have enough to pay a mortgage given your mortgage is less than your current rent. However, have  already saved for your down payment? You should expect to deposit or make a down payment between 3-20% of the purchase price.

Closing costs can also climb as high as 2% of the purchase price. Most legitimate financial institutions want to see these funds in your account as liquid assets (sorry no bitcoin yet). However, you can borrow this or receive it as a gift from family and friends. Be honest about your current financial situation. And make sure to leave some cash on hand for repairs, furniture and other moving in costs.

Are you pre-approved for a mortgage?

How is your credit? Do you know what’s on it? Has a financial institution shared with you how much house you can afford? Most realtors will not show you homes until you have a pre-approval letter. It saves everyone time by knowing your numbers and staying within your approval guidelines. Be sure to add taxes, insurance and hoa fees – that is your true number and the limit the bank will place on lending.

Will you occupy this home?

Will this be your primary residence or are you planning on renting it to someone else? Certain financial institutions and condos for example requiere certain occupancy requirements. Investment properties also requiere a larger down payment. Financial institutions give financing for investment properties but they want to make sure the investor is financially stable enough to take on the investment.

What is your time frame?

If you have the answer to all of the above questions you are ready to buy your future home. Not sure? Need some more help? Reach out to someone in the Budget Build Buy community we have many answers and free resources.

Are you ready to buy your future home?