Published on July 9th, 2018 | by Balanced Family
I Want To Buy A Home, But I’m Completely New To The Process What Should I Know First?
You’ve wanted to build your own home for a while. You just don’t know where to start looking.
Should you be focusing more on finding the ideal location or are you better off staying close to your budget? Should you buy a home now or wait for prices to change over the years? To purchase a home today is to ask a thousand questions, with only some of the answers coming easy. When nearly a third of all home buyers are also doing so for the first time, it’s smart to answer some simple questions right off the bat. Your dream home doesn’t have to be a distant fantasy, not even when it comes to the newly built homes that have caught your eye.
Here are five questions you should be asking before purchasing a home in 2018.
Will The Location Support Your Lifestyle?
Are you an active person that loves to go hiking? Do you have another child on the way and want a neighborhood that’s safe? Before you purchase a home you need to analyze the elements in your lifestyle that need the most support. The U.S. Census Bureau, as well as the Department Of Housing And Urban Development, recently estimated one million new homes being built in April of 2018. There are more than enough options for you to choose from, regardless of whether or not you’re a homebody or someone who loves to go downtown and socialize.
Are You A New Home Buyer?
It’s all right to admit you’re treading into unknown waters. In fact, a significant number of buyers today are doing so for the first time. A recent study also found Millennials made up nearly 35% of the home-buying population back in 2017. When you purchase a home you need to take into account location, budget and amenities. You also need to figure out the most affordable mortgage plan. While it can be tempting to go all out, you’re better off staying within your monthly parameters and avoiding the possibility of defaulting on a loan a few years down the road.
Is Your Credit Score High Enough?
Another factor you need to consider on your way to purchase a home is your credit score. This will determine the type of loans you’re able to get and, by association, the homes available to you. The average minimum credit score for a traditional mortgage loan today is 620, while the minimum score for an FHA loan is around 500. The average American borrower also puts down an estimated 5% on their home purchase. Taking a look at recent patterns will help narrow down a scary process and get you that much closer to the house of your choice.
Where Do You See Yourself In Five Years?
This is a useful question to help you figure out which new home builders are working toward your goals, even if it doesn’t pay off for some time. Some home owners plan on passing down their homes to their children in the future. Others want to sell and move somewhere else. When you buy a home you also provide yourself a means of saving up for other ventures. The American housing market has grown by nearly 12% since 2008. You have plenty of time to figure out where you want to go, but starting off with a list now will make your goals feel that much more tangible.
Have You Spoken With A Real Estate Agence
Let’s say you answered most of these questions positively. It still wouldn’t hurt to talk to a real estate agent. Buying a home can be a very intimidating process because of all the steps involved. Even experienced home buyers find themselves wishing they understood the terms of their mortgage or homeowner’s insurance better. Today the average American borrower puts down an estimated 5% on their home purchase. Another 35% of homeowners have 100% equity on their properties, meaning they either paid off their mortgage or didn’t have one.
Model homes are available across the country. Choosing one is just a matter of asking the right questions.