If you do a Google search on how to sell your home, you’re going to end up with a lot of the same results that you probably already know. For example, get a realtor, figure out how much your home is worth, stage your home, get it listed, etc. When reviewing the steps to buying a house, there are some things that most people overlook. This is a list of uncommon knowledge that you should know before you take the big leap.
Yes, indeed, you may need a bigger budget than you intend. And yes, you will have to pay a lot of fees, taxes, and closing costs. You’ll have to pay inspectors, contractors, and possibly a whole lot of other people.
Regardless, you do not need to spend the whole amount you may be approved for on a home loan. What tends to happen with new homeowners is they see what they are approved for and they are overjoyed when it is more than they may have expected.
This may all look great on paper, however, this is just based on the information provided. You are the only person who can determine if the maximum is feasible for your lifestyle. If you plan on having a baby in a year and are expecting to miss work, are you going to be able to stay on top of your payments during that time?
Ultimately, you want to make sure you can afford what you get yourself into. There can be a lot more that comes with that approval amount that you are not seeing initially. You also need to take into account that you are going to need funds for possibly new furniture or appliances.
Just because you do not have children, does not mean that the school district in your new location doesn’t matter. And just because you don’t see any signs of urban development doesn’t mean that it’s not in the works.
Location is a huge factor in property value. So even if you aren’t so concerned with it, the value of your potential new home takes all of this into consideration. This is important for the “why” your potential new home may cost what it does.
You can look into what plans your potential new community has in store. Maybe they are adding a shopping center close to your home, a highway, or a park. This all goes into the cost of living.
Your school district is a huge factor for property value as well. Very good schools are desirable for parents. If you don’t have any children and aren’t planning on ever having children, then why go for a home that is in a top school district? Ask your realtor for help to maneuver these small details.
It’s Your Responsibility
This may seem pretty apparent, but you will want to be fully aware of the fact that whatever goes wrong with this new home is completely up to you to fix. Home buying is a costly experience and putting aside money for repairs is necessary.
You may not have had to hold savings for repairs if you were renting prior to purchasing your home. Hopefully, after you purchase you won’t have to start making repairs right away. But you may want to purchase new furniture and you may need new supplies for living in your new spot.
For example, if you now have a dishwasher where you didn’t before, you should start to purchase dishwashing fluid. If you have an extra bathroom now, you will need to purchase supplies for it. Keep this in mind with budgeting for your purchase. You’ll need to start putting away money for this as soon as you can.
These items may not be all that big of a deal in hindsight, but they are definitely worth mentioning and taking into account so that you can be most prepared for this new milestone in your life.