Factors to Consider When Buying a House

Couple with agent visiting the property

Couple with agent visiting the propertyPurchasing a home is one of the biggest decisions you make in life. It can be scary and exciting at the same time. In the rush of the moment, you might miss out on important tips that may end up messing your chances of closing in a good deal.

It is, therefore, important to consider the following guidelines when buying your home.

1. Compare different lenders’ rates

One key trap that many house buyers fall into is talking to a single lender. They end up with the only deal they came across without considering other options. You should avoid this pitfall by shopping around for several lenders.

Get to compare the different mortgage rates offered in Washington before settling down on one. It is recommended that you talk to at least three different lenders in the process. You may end up saving quite a huge amount of money or negotiating a favorable mortgage that will not overburden you.

Consult a mortgage broker who will help you understand the loan terms, lender fees and compare the rates. Loan officers will also assist you in navigating the possible roadblocks that may lie ahead of you in the home-buying process.

2. Find out the real cost of the house

Enlighten yourself on all the costs of buying and maintaining a home to make a well-informed decision. It is important to understand all the tax implications on your mortgage and how they will affect you.

Also, ascertain that the mortgage payment does not exceed the recommended 30% of your gross income. Establish whether your new neighborhood has a Home Owners Association and their monthly contributions beforehand.

Have a thorough home inspection ran to establish the repairs and maintenance that the house might require and how much they cost. Basic house maintenance may cost you up to 3% of the home’s purchase price annually. If the house requires major repairs such as a new roof or an HVAC system, then be prepared to part with a large amount of money.

3. Get a good location

The location of your home really matters as it may directly affect your joy and satisfaction. Research about the state of the neighborhood to know more about its safety and general condition. Find out the accessibility of social amenities in the surrounding.

Ask about the susceptibility to natural calamities such as flooding. It is also essential to establish whether the value of the property has increased. This information will tell you whether the area has grown over time or not.

4. Yes, size matters

Couple looking at the house

When buying a home, it is important that you balance between your present and future considerations to choose the ideal size. Thinking about the future, you may require extra room for your children.

However, that may not be affordable at the moment, and you have to live in reality. Consider taking the space you can comfortably afford at the moment and plan for it repurposing accordingly in the future.

Whether buying a home for the first time or the umpteenth time, it is important that you take into consideration the size and the location of the home, the real cost of the house and talk to different lenders. Only settle after getting a satisfactory deal.