Buying your own property is exciting and a journey that everyone ought to experience. Still, its financing and other requirements make it hard for people to purchase a house. Instead, folks opt to rent a place where they can afford it since renting can be more affordable than purchasing in the short term. There are some important considerations to consider when buying your first home, and if you’re reading this, you’re in for a treat as we tackle some points.
1. What Are You Willing to Pay For It?
Calculating your expenses is at the top and one of the most critical things to think of when investing in your first home. Knowing what you can spend will give you a better idea of options like the location, how many bedrooms you’ll need, and whether it is near your workplace or school. Living closer to the main cities is usually more expensive but sometimes more of a prime location. However, if you want to save, moving further away from the main city might be the financial solution you need for your budget on your new home.
2. Research the Area
Wherever you go, you want to be safe and know that the family you’ll have someday or the one you already have will be safe while living in a certain area. Doing research is key to finding the best location for yourself and your family. Statistics from the FBI Uniform Crime Reporting Program suggest that there were 39,228 reported cases of violent crimes in Pennsylvania in 2019. If you are living in Pennsylvania and considering relocating, this may be a time to look for a better location. Perhaps only certain parts of Pennsylvania are a target for these crimes. You should check where you’re headed, whether the place you’re going to is safer and in a security complex, or something more secure.
3. How Many Bedrooms Will You Require?
Even if you don’t have a family now and you perhaps get to buy a home sooner than later, consider the prospect of extra space for a future family. You could get a home with more bedrooms at a more affordable price now than you would in a few years from now. Investing in more bedrooms now is a wise move for future planning. Did you know that 33% of renters move each year? You might be one of this group seeking a more permanent residence.
4. Save for a Down Payment
One of the ways to get ahead with your plans for purchasing your new home with finance is securing a down payment. Don’t opt for the minimum amount, instead go for something that exceeds 20% because the more you’re able to pay upfront, the less the mortgage installments will be. Work with a real estate agent to get a better idea of which houses are in your budget.
5. Check the Property’s Needs
Once you find the ideal home and are ready to purchase, you should also look at what needs fixing. Before a person sells their property, they need to fix certain elements as part of a compulsory requirement. Still, there might be other additions that you need to repair before buying the home. The heating systems need attention too. If you clean your Heat Exchanger regularly, you could save $5,000 to $10,000 per year in energy costs. You can also take the opportunity to check any electrical work, plumbing, and furnace if there is one on the property.
If you’re in the market to buy a new home, well done, and congratulations to you. We hope that this blog can help you with some things to tick off your list as you transition from rental tenant to homeowner.