Buying a house is a big decision and requires you to reflect on your future plans. You need to be financially secure before taking a step because once you have taken out a mortgage, it becomes necessary to make the monthly payments on time so that you don’t fall into debt. Following are a few questions that you need to ask yourself before proceeding with your plan of buying a house:
1. What Are Your Future Plans 5 to 8 Years From Now?
Do you have a steady income?
Does your current salary fulfill all your needs and wants?
Do you see any unexpected financial, family or carrier changes in the future?
If there’s going to be an addition to your family, you need to factor in a new budget for the baby. It’s better to get your finances sorted out now, so that you are not forced to sell your new house just a few months down the road.
2. What is the Total Cost of Owning the Property?
It’s important to keep your insurance, interest, principal and tax expenses below 28% of the monthly income. On the other hand, your debts should be less than 36%, so that lenders don’t reject your loan application.
A bigger house means more cooling and heating costs, higher homeowner association fees, bigger down payment, costly home repairs and other minor costs such as:
- Closing costs
- Moving costs
- New appliances
Note: Home repairs involve the highest costs, which is why you should not be looking at fixer uppers, no matter how good their location is.
3. Is Your Credit Score on the Up and Up?
A credit score from 700 to 760 is ideal for getting a good deal on your mortgage. This will help you in getting better interest rates and payment terms. You can maintain a good credit score by paying your outstanding debts, over-the-top purchases on your extra credit cards and bills on time.
4. What’s Your Plan of Attack for Maintenance and Home Repairs?
Home for sale in Sandy Springs, GA are not sold based on their lavish features. Swimming pool in the backyard, a large lawn, a small garden in the front yard, plumbing problems – all these can cost a pretty penny. If you are a DIYer, even then you might only save a few hundred dollars because some repairs are just out of your hands. Don’t try to fix them unless you have done them before because if the damage expands, you will be spending thousands of dollars for something that might have gotten fixed under just a few hundreds. This is a huge cost that you need to factor into your budget.
5. Will Your Monthly Budget Get Hit By the Location?
Is your new house closer to work?
Does it have a community center nearby where you can enjoy recreational activities?
Is there a toll road?
How often do you eat out?
Is the grocery shop not in walking distance?
These small costs can fall out of the budget and create a problem. Better make sure that the house is in a nice enough neighborhood that has most of the facilities you were looking for.
Your budget has the power to break your dreams. This is why it is important that you get your finances into order before thinking about buying a house. Want to know what a home for sale in Sandy Springs, GA costs? America’s Network Reality Group Inc. is a website that allows you to search houses in Sandy Springs, GA according to your specifications.