Buying a house is a big financial investment so it doesn’t hurt to gather as much information as possible! Consider this as a guide to buying a house:
Think about the long run
A house is an investment that often pays off well with time. Most of the people buy to sell a house but it must be such that you’d want to live in it for at least five years – a house well equipped with your requirements now as well as in the future.
Home is where you make memories
More than a financial investment, your home is a place where you live, sleep, have friends over, raise your children and more. Here you create memories and shape your life. You will be living in the home you buy at least for a few years, regardless of its increase in value over time. Finding a home suitable for your needs and lifestyle must be the most important criteria.
Evaluate your needs and budget
Stick to your needs and budget while house hunting. List out your basic needs and refer to it. Look for local schools, go for a shorter commute and know what you’re willing to compromise.
Aim for a 20% down payment
A 20% down payment is ideal. A higher down payment reduces your financial risk as you won’t owe more money than your house is worth if the markets fall when you need to sell.
Keep a six-month reserve
Build a strategic reserve and keep it separate from your normal bank account. Plan it in a way that it covers six months of living expenses in the worst-case scenario.
Evaluate all the available options. Go with the one who meets all your needs. Spend no more than one-third of your income. That much is a manageable amount. You won’t regret spending a little less on a house but you’ll definitely regret spending over your budget.
Keep options open and think long-term
Be prepared to walk away if the sellers don’t accept your offer, stick to what you can afford and don’t overreach or settle. Think of the long run, waiting for a month longer won’t matter if you think of the bigger picture. Aim for 10 years, even if you have to wait a month or two. You will find it rewarding when you are truly happy living in the house of your dreams.