Buying a home is a dream come true for most people. When you decide to settle down and have a place you call home, there is no turning back. Therefore, before you drain your savings into buying that new curb, you want to make the right decision.
So, what more should you consider besides the Case-Shiller home price index when buying a home? Here we look at the most important factors you want to look into before choosing your next home.
1 – Purchase Price
How much are you willing to spend on a new home? Well, that will depend on your budget, or let’s say, how much you’ve been saving for a home. The purchase price is a crucial factor to consider when buying a home. That said, before purchasing a home, you should determine how much you can afford and your debt-to-income ratio.
Understand the prevailing mortgage rate and down payment required for specific homes, and get yourself approved for a mortgage. Also, you should factor in the closing costs of buying the house – like the legal fees and land transfers.
2 – Features you need in a Home
When buying a home, you should also consider whether the curb has all the necessary features. You should come up with a list of things you need your dream home to have – right from the number of bedrooms, living room design, and kitchen countertops.
However, you should keep in mind that the next home offer you get may not have everything that you desire to have.
3 – Local Market Indicators
When out to buy a home, you should also look into the prevailing market indicators. One such indicator is the Case-Shiller home price index, which helps you determine the right time to invest in a home.
You have no control over the local housing market, but being in the know is important to making the right decisions on when to buy a home. The local market may not have your dream home or home listing within your price range.
4 – Mortgage Rates
Mortgage rate is another factor you want to consider most when buying your first home. It keeps changes with fluctuations in interest rates and existing monetary policy. That said, you want to pay attention to the real estate market and know the right time to buy a home.
5 – Location
Where you are buying your home is another factor you should consider the most. This is where you’ll live most of your life, so the community must be a good fit. If you are moving to a new location, get to know the desired community and neighborhood in person. This is important before you think of buying a home there.
Apart from how it feels living in this neighborhood, you should also look into other factors such as:
- Cost of living
- Proximity to work
- Proximity to family and friends
When looking for the right home, consider price, budget, mortgage rate, and location. Most importantly, you should hire a real estate agent to hold your hand throughout home-buying.