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What to Consider Before Buying a Home

Buying a home can be an exciting time, however, this excitement can launch you into the home buying journey prematurely if you rush the process. It’s important to thoughtfully consider your desires and needs for a new home before making the big leap. Here are some things to think through before you set out on your home-buying journey.

Decide on Your Deal Breakers

Many people have a “dream house” in mind when purchasing a home. While it is good to know what style of home you prefer, it is even better to decide what you absolutely must have. How many bedrooms do you need? Do you need a play area? Fenced in yard? Bigger kitchen? How many bathrooms would accommodate you and your family best? Do you need a garage? If so, attached or detached?

By having a pre-determined list of must-haves, you will walk into the market with a stronger sense of what you need, so you are less likely to make an impulsive decision.

Have a Set Price in Mind

When getting pre-qualified a mortgage, many people want to qualify for the maximum amount they can afford. While this may allow you to buy a home that is bigger or has more features, you ultimately need to determine how much of your monthly income you can comfortably dedicate to a mortgage payment while still paying for other bills, such as utilities, groceries, and child care.

So, instead of finding a home that you love and then determining whether you can afford it, first determine what you can afford and then find a home that you love. Reviewing your monthly income and expenses will help you determine what price range you can afford and this will ultimately save you money in the long run.

Think About Additional Costs

In addition to the cost of a down payment, it’s important to remember that there are additional costs associated with buying a home. These can include earnest money, Attorney fees, inspection costs, and Home Owners Insurance. While you are budgeting for your new home, remember that you will need to set aside enough money for additional expenses.  

Use Trusted Experts

There are many home buyers who try to cut costs by doing everything themselves. Even though this is an attempt to save money upfront, this could end up costing a lot more down the road. Here are some trusted experts who are valuable to utilize during the home buying experience:

Realtor

Not only do realtors help you find a home that matches your budget and lifestyle, they help you place offers, schedule viewings, handle paperwork, navigate neighborhoods, and save money down the line. A trusted realtor who is familiar with your area and community can offer guidance using their experience.

Home Inspector

The role of a home inspector is to identify any health, safety, or major mechanical issues with the home you have placed an offer on. While some folks opt to skip inspections in an effort to save time and money, this could lead to costly fixes. By getting an official inspection done with a qualified inspector, you will be made aware of any known issues up front, so you can confidently make the purchase.

Attorney

Real estate attorneys are trained in property interactions and are qualified to help you navigate anything that could arise throughout the home buying process. Anything from negotiations to prepared mortgage documents, real estate attorneys can represent your needs when buying a home.

Mortgage Lender

When searching for a mortgage lender, some people seek out a lender with the best rates. While making sure your mortgage rate is acceptable and competitive, it is just as essential to have a lender that will provide quality service, expertise along with local processes.

Here at Blackhawk Bank, our mortgage planners set out to offer home buyers a worry-free lending process that your loan will close. They will be there to answer your questions, provide guidance, and make sure the process is smooth and stress-free. Want to learn more about how we can make your home buying experience exceptional? Visit our mortgage lending website or contact us today! 

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Author: 

Tammy Zurfluh
SVP Mortgage Banking
NMLS#476483