Understand The Why Behind Your Buy

Purchasing a home is most likely the biggest financial decision you will ever make. Whether this is your first purchase, or you are an experienced buyer, this decision should be made with confidence and certainty.

Perhaps you have grown tired of paying rent and would like to pay your own mortgage instead of your landlord’s? Maybe you’ve outgrown your current home and need a larger yard? Are you looking for a rental property? Would you rather live in a different area and shorten your commute to work?

Affordability, location, and desired features are the key factors you should consider. Identifying your needs and having a clear sense of your reasons for buying will help you select the right home for you!

Affordability

Your monthly payments should be comfortable for you to handle. A good guideline is for your mortgage payment and your debts to not exceed 36% of your income, including revolving credit, student loans, and child support.

You should choose the correct loan for your needs. A fixed rate is more expensive but offers more protection than an adjustable-rate mortgage that can reset to a higher amount, making your monthly payments higher.

Don't forget to consider the monthly operating costs of the home as well, including utilities, HOA fees, landscaping, commuting, and other costs.

Location

Location is about convenience, and you'll pay a premium to be closer to work centers, parks, shopping, and transportation. You can buy a smaller home or a home in need of updates to be closer. To get a larger home or more yard, you may have to move further away from core city centers and compromise on commuting time.

Features

When considering potential homes, it's important to know the difference between what you need to have in your new home versus what you want to have. Use the needs list to begin narrowing your choices. While a front porch, a two-car garage, hardwood floors, and eat-in kitchen can add to the enjoyment of your home, they might be of lower importance to you than a fenced backyard or an unfinished basement area that you can grow into. If you frequently work at home, you'll need a home office or at least a quiet designated workspace.