When searching for your dream home, it is easy to become swept away by a property’s beauty and make a buying decision based on your emotional reaction. However, as one of the most significant purchases you will ever make, it’s important to approach the house-hunting process with a clear idea of the non-negotiable characteristics you need—versus those that you merely want.
As you cultivate your wish list, here are the top factors to consider:
Budget. No matter how much you love a property, owning it will quickly become a burden if it strains your finances. As you set a budget, consider not only how much you will need for a down payment and monthly mortgage payments, but also closing costs, private mortgage insurance (if you’re planning on a down payment of less than 20% of the purchase price), and an emergency fund for any needed repairs or maintenance. A helpful rule of thumb is to only target properties that cost no more than three times your annual household income. However, this will vary based on your circumstances, so be sure to consult a mortgage professional to get a realistic idea of how much you can afford.
Neighborhood. You are probably familiar with the old real estate adage, “location, location, location.” Location is, indeed, one of the most important qualities that will govern how much you enjoy your home. As you search for your ideal neighborhood, consider factors like the school districts, crime rates in the area, and proximity to your office, transportation, and amenities.
The minimum number of bedrooms and bathrooms you will need, taking into consideration whether you tend to host lots of guests or are planning to grow your family in the future.
Style. In addition to deciding between single-family homes, condos, or townhouses, consider the architectural styles you like, and whether you would prefer newer construction or could handle a home that needs some improvements.
Sources: southbayresidential.com
