Fancying buying a home for yourself but not sure if you're making the right choice? Answer these 10 questions and see if buying a home is actually a good deal for you (or not)!
Becoming a homeowner brings with it new obligations and commitments, so purchasing your first house should not be taken lightly! Ask questions to yourself before buying a home regarding purchasing a property in general, like what a home inspection is, and how long it takes to buy a home.
There are several commonly asked questions regarding purchasing a property in general, like what a home inspection is, and how long it takes to buy a home.
These sorts of inquiries are crucial since they can assist you in understanding common real estate lingo. They don't, however, provide much guidance on whether you should purchase your first property or not.
So it's wise to do some "soul searching" before purchasing your first property. Many of the concerns before purchasing your first house may be difficult to answer, and make you feel uncomfortable, but doing so will considerably increase the likelihood that buying a home now is the appropriate option.
In this blog, we'll go over ten of the most critical questions you should ask yourself before purchasing your first house.
Continue reading to learn the most critical questions to ask yourself as a first-time buyer before beginning the process:
Question 1 - What's the reason for buying a home right now?
One of the first things you must ask yourself before purchasing your first house is a basic one.
People opt to buy their first house for a variety of reasons. There are several advantages to owning a home, the most prominent of which is the pride of possession and the fact that purchasing a home is a sound investment.
Whatever the reason, it's critical to understand why you want to buy your first house.
If you're trying to decide whether to keep renting or buy a home for the first time, asking yourself why you would want to buy a home for the first time will help.
Question 2 - Have I saved enough for my first home?
There are several costs associated with buying a property, such as the down payment, taxes, home insurance, and bank appraisal fees.
Because of the expenditures connected with purchasing a home, you should consider whether you have enough cash saved for the purchase.
This does not necessarily imply that you will need lakhs and crores of rupees in savings to buy a home (which is among the most frequent mortgage fallacies), but you will most likely require a decent amount to purchase your first home.
If you're unsure how much money you'll need to buy your first house, go to a mortgage specialist.
This can help you realize just how much money you'll need on hand, which will help you determine if you're in a position to buy a home.
Question 3 - Can I tolerate the less-than-pleasant parts of homeownership?
Suppose you can't imagine having a home maintenance issue without a landlord to call to solve it. In that case, you should reconsider owning - or, at the absolute least, buy a low-maintenance condo or townhome in good shape and acquire a home warranty!
After all, as a homeowner, you are your landlord! What if a pipe bursts in the dead of night? Who do you think will be up repairing it or calling (and spending for) the plumber? (Hint: it's you!)
There are also some less-than-pleasant costs you'll have to deal with as a homeowner that you've never had to deal with as a renter, such as property taxes and hazard insurance.
When you go from renter to owner, you must consider the expense of appliances and the cost of maintaining the property's roof, windows, and gardening, among other things.
Question 4 - How long do I plan on staying in the house?
If you expect to leave the region within the next year, you should avoid purchasing a home (unless you want to act as landlord and rent it out after you leave, which involves its own risks and rewards).
For your home purchase to be a sound financial investment, you should not buy unless you are happy residing in that home for at least 5-7 years (even more, if you are purchasing a home in a foreclosure hotspot, or an area with a slow employment market).
This allows you to accumulate equity and offset the costs of purchasing, selling and relocating.
Question 5 - Are my funds and job secure?
Have you recently made a huge professional move and are making your way back up from the bottom? Or are you part of a workforce severely impacted by layoffs and budget cuts this quarter?
The worst-case scenario is finding yourself in a situation where you have no method of making mortgage payments when you might have avoided this by recognizing the writing on the wall.
Suppose you believe there is a genuine possibility that you may lose your job or income soon. In that case, you should choose to postpone purchasing a home. This has the extra benefit of allowing you to relocate if necessary to find new employment.
Is it possible to have 100 percent job security in today's economy? Most likely not. However, before you buy, you should be satisfied that your finances can withstand a short lack of income while still making your mortgage payments.
Before you consider yourself ready to buy, you should have enough cash in the account to cover 4-6 months' worth of living expenditures, including your mortgage payment.
That way, even if you lose your work unexpectedly, you'll have a good window of time to locate another without burying yourself into a pit - or worse, losing your house entirely.
Question 6 - Where should I buy my first home?
Even if this is your first house, you've probably heard the phrase "Location, Location, Location".
Knowing where you want to live is crucial. Knowing where you would like to live might help you assess whether you can genuinely afford to live there.
For example, if you want to buy a property in an area where the median home price is Rs. 1,25,00,000 but your mortgage is only authorized for Rs. 1,05,00,000, you may also want to contemplate waiting until you can afford housing in your chosen region.
Question 7 - Do I Understand the home-buying process?
The inspection phase, earnest money deposit, legal approvals, bank appraisal, and mortgage commitments; are just a few of the procedures you'll go through while purchasing your first house.
It is critical that you understand the home-buying process before becoming engaged. If you are unfamiliar with the process of purchasing your first home, speaking with an experienced real estate agent is a terrific approach to educate yourself.
Question 8 - Where do I see myself in five years?
Yes, we realize there is no such thing as a crystal ball that can predict where you will be in five years.
But before you buy your first house, you should make an informed bet about where you'll be in 5 years.
If you're considering purchasing your first property and intend to move to Goa over the next few years, you should rethink buying.
It's a good idea to know where you'll be in the following years since if you sell your first property in a year, you'll have very little equity if any.
This may need you to spend out of pocket to cover the expenses of selling your home, which may or may not be viable based on the financial circumstances.
Question 9 - Do I know any good real estate agents?
Last but not least, before purchasing your first house, ask yourself whether you know any good real estate agents! A good real estate agent can be a very useful guide to purchasing your first home.
Too frequently, first-time buyers skimp on the process of picking an agent. This often leads to frustration, uncertainty, stress, and, in some cases, an unsatisfactory house purchasing experience.
You shouldn't buy your first property if you don't know good real estate agents.
Suppose you educate yourself on how to question real estate agents while purchasing a property. In that case, you will dramatically increase your chances of hiring a rock star agent rather than a dud.
Aside from learning how to interview potential real estate agents, several websites and services are available to assist you in exploring local agents.
Question 10 - What happens to this investment if I die?
Well, there’s hardly anything that you can do in this situation, but the only reason this is our 10th question is because your family shouldn’t have to bear the brunt of heavy costs of interests that you took up.
Home loans are a serious affair and a long-term investment that could lead to them being lost and at sea in case something happens to you!
You've got to make sure that you have good insurance to back you and your family up in such situations, and make good on your promise of leaving your family something they can call their own even after you go.
Before you buy your first home, you should ask yourself the above questions.
Purchasing a home for the first time is a big deal, so you must be sure you're happy with your decision.
A few of the questions above may seem silly or hard to answer, but if you ask them, you'll have a better chance of making the right choice when buying your first home.