Buying a home is one of the most important financial investments you will make in your lifetime. In fact, experts say that 40 percent of a homeowners wealth is tied up to their home. As you begin your search for your new home here are five things to keep in mind.
Buy for the long run
A rule of thumb to follow in the home buying process is to buy a home you can see yourself living in for at least five years. A 2017 house trend report showed that half of the homeowners in America are living in the first home they purchased, with the other half living in the home for about 10 years.
In short: Buy a home you can see yourself living in long-term and has the potential for renovations.
Buy a home because you like it, not because of its potential return
When it comes to buying your (primary) home it’s important to look at it in terms of comfort and stability and not on how much your return will be overtime.
In short: The housing market is unpredictable so it is better to buy a home that meets your needs, not a home your betting on.
Stick to your Budget
One of the first things to set when buying your home is your budget. Make sure you firmly stick to what you can comfortably afford. It can be easy to get carried away from your budget. Last year, 30% of homebuyers went over their budgets. Set a firm amount and stay to it.
Getting pre-approved entails collecting all your paperwork, documenting your income, debt, and credit. It also allows you to understand all the loan options you have available, saving you a lot of time down the road. Most importantly, pre-approval helps you understand what you can afford.
Be Willing to Walk Away
Buying a home can be a bit stressful but in the end very rewarding. The important thing to keep in mind during your time-consuming search is that if a home does not offer the features you need, pass an inspection, or your offer isn’t accepted be willing to walk away. In the end, it’s better to wait for a home that has all your must-haves than settle for something without them.