Looking forward to a new home? Are you a college student that wants to move out, or are you sitting in a rented home right now looking to take the next step? No matter what your current position is, there are a lot of factors to consider before even looking into a mortgage. Follow this checklist, and tick off each point as you clear them. Don’t even look at a new home until you’re confident that you can answer these following questions.
Do You Have Enough Money?
On top of all the hidden fees that realtors won’t let you know, there’s a lot of money involved in buying a new place for yourself. First of all, you aren’t going to buy a home with a lump sum of money unless you’ve just won the lottery or robbed a bank. If a house costs around $300,000, you’re going to need at least $50,000 to cover the fees and a deposit. If you aren’t 100% sure on how much money you need upfront, consult a service like SMBIA first.
Do You Need a New Home?
Ask yourself why you want to move. Is it because you landed a job in another state or a different city? Is your current home too small and you need to prepare for new additions to the family? Or do you just want to get away from someone? Now that you understand why you want to move, ask yourself if it’s worth your time and money. Let’s face it, not everyone moves home because they want to, but if your reason is something like “I want to get away from my EX” then perhaps renting is a better option.
Do You Have Stable Income?
If you’re going through a rough time at work, then you’re most likely not going to survive the whole mortgage length. You need to have a stable job or flow of money to be able to afford the entire cost of a house. Remember, homes are expensive, and you are expected to pay the entire thing. You aren’t renting and you aren’t on a temporary contract—buying a home means you will own the entire thing. It’s not cheap, it never will be, and you don’t want to commit unless you have cash incoming.
Do You Think You’ve Done Enough Research?
Research means more than just taking a look at listings on the internet. Have you been to the properties? Have you spoken to real estate agents? Have you consulted help from friends? Have you looked up the price of owning a home? There are so many factors to consider when buying a new home and you need to make sure you’ve researched every little thing so that you’re prepared. Research everything from the internet speeds to the average cost of bills in that area—leave no stone left unturned.
Do You Have What it Takes?
Owning and paying for a home isn’t to be taken lightly. There could be serious consequences if you fail mortgage payments, and you’ll be seriously in debt if you take a wrong step. You’re going to be in charge of pretty much anything in your home. You won’t have a landlord to contact to fix things and you won’t have parents or friends to help you take care of the home and wash your dishes for you. Don’t commit unless you are motivated and can realistically pay it off.
Answered yes to all of these questions? Then good luck on your journey, you’ll need it!